BDO unit surrenders trust license
Restituto Cruz, sector in charge of the supervision and examination sector of the BSP, said the Monetary Board has approved the surrender of the trust license of One Network Bank Inc. BusinessWorld /File
MANILA, Philippines — The rural banking arm of Sy-led BDO Unibank Inc. has given up its trust and other fiduciary business, according to the Bangko Sentral ng Pilipinas (BSP).
Restituto Cruz, sector in charge of the supervision and examination sector of the BSP, said the Monetary Board has approved the surrender of the trust license of One Network Bank Inc.
The license allowed the rural bank to conduct trust and other fiduciary business.
In 2015, the country’s largest bank owned by retail and banking magnate Henry Sy spent P6.7 billion to take over Consunji-led One Network Bank through a share-swap transaction.
The following year, BDO sold a 40 percent stake in One Network Bank to US-based TPG Growth, while retaining a 60 percent interest in the rural bank.
BDO also surrendered the banking and trust licenses of Banco de Oro Savings Bank Inc. (formerly Citibank Savings Inc. in June 2016) as part of streamlining initiatives as the bank, acquired in 2013, has become an inactive subsidiary.
Earnings of BDO rose by seven percent to P28.1 billion last year from P26.09 billion in 2016 on strong growth across all business segments.
The bank’s net interest income jumped 25 percent to P81.8 billion after its loan book went up by 18 percent to P1.8 trillion on broad-based increases across all loan segments.
BDO’s deposit base booked a double-digit growth of 11 percent to P2.1 trillion as low-cost checking and savings account deposits increased 11 percent.
Fee-based income surged by 30 percent to P28.9 percent and translated to a 13 percent rise in non-interest income to P47.2 billion. Likewise, insurance premiums rose 23 percent to P9.9 billion.
The largest lender in the country’s gross income went up by 20 percent to P129 billion despite the 20 percent drop in trading and foreign exchange gains to P3.9 billion given the challenging market conditions.
BDO registered a 21 percent jump in operating expenses to P84.9 billion amid continuing investments in branch network and strategic initiatives.
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