October 14, 2013

BDO on track to meet 2013 profit target

The Philippine Daily Inquirer yesterday, BDO (BDO, Buy) quoted president Nestor Tan as saying the bank is on track to meet its P20.4b net income guidance for 2013.

Moreover, in order to prepare for rising interest rates, he said that the bank has worked on shortening the duration of its investment portfolio. Moving forward, Mr. Tan expects to sustain loan growth of low-to-mid teens in order to grow its recurring earnings.

Our take: BDO is one of the banks that greatly benefited from trading gains this year. We view positively its move to lessen its dependence on trading income and increasing its focus on delivering loan growth.

We believe that BDO can leverage on its strong capital position by maintaining consistent and robust loan growth. - WealthSec