BDO Unibank Inc., the country’s largest lender controlled by tycoon Henry Sy, will pay P1.31 billion worth of cash dividends to common shareholders on March 31, after realizing a record net income last year.
The declaration of cash dividends was approved by the bank’s board in a regular meeting Friday.
“Please be informed that the board of directors of BDO Unibank, Inc…. approved the declaration of regular cash dividends on common shares in the amount of P0.30 per share for the first quarter of 2017 payable on March 31, 2017 to all stockholders of record as of March 14, 2017,” it said.
The bank said the source of the dividends was the “surplus profits of the bank as of December 2016.”
Bank records showed that BDO had 4,366,694,984 common shares and 515,000,000 preferred shares.
BDO’s net profit last year rose 4.4 percent to a record P26.1 billion from P25 billion in 2015, on robust growth across all business segments. The full-year performance also matched its earnings guidance for the year.
Customer loan portfolio increased 16 percent to P1.5 trillion, while total deposits rose 15 percent to P1.9 trillion, on sustained growth of the bank’s low-cost current and savings account deposits. Net interest income went up 15 percent to P65.6 billion, reflecting the quality growth in the loan portfolio.
Meanwhile, fee-based income grew 15 percent to P22.2 billion and insurance premium contributed P8 billion, as the bank’s efforts at diversifying income stream started to bear fruit.
Fee income sources compensated for the decline in trading gains to P4.8 billion.
Gross operating income settled at P107.2 billion. The bank’s operating expenses advanced 27 percent to P70.1 billion, primarily reflecting the consolidation of One Network Bank and BDO Life Insurance. Excluding these items, operating expenses would have risen 11 percent.
The bank set aside P3.8 billion in provisions for the year even as gross nonperforming loan ratio held steady at 1.3 percent, while NPL cover remained high at 139 percent.
Capital base stood at P217.5 billion, with capital adequacy ratio and common equity tier 1 ratio at 12.4 percent and 10.7 percent, respectively.