BDO aims for 20% loan growth

MANILA, Philippines—Banco de Oro Unibank aims to sustain a 20-percent expansion in its loan book each year for the next three to five years, backed by a recent $1-billion core or tier 1 capital infusion from a landmark stock rights offering.

In a press briefing on Wednesday during the listing of new shares issued by BDO—which also the bank’s 10th anniversary as a publicly listed company—bank president Nestor Tan said with the company’s fresh capital build-up, it would have room to expand risk assets in the following years.

After expanding the bank’s lending book by 24 percent last year and sustaining a 23 percent year-on-year growth in the first quarter of this year, Tan said the bank would be able to sustain a growth of 20 percent for the next three to five years. He said this would take into account the expected improvement in the overall economy.

BDO may also be able to continue expanding its local distribution channel by 35 to 50 new local branches each year in the years ahead, Tan said. “We don’t look at target number of branches, but what the market requires.”

Tan said the expansion of branch network was for the purpose of reaching new markets and adding service centers. To date, the banking arm of the country’s wealthiest man, Henry Sy, has one of the largest distribution networks in the country at 770 branch licenses and over 1,645 automated teller machines. It has about five million in retail customer accounts.

Other Stories:

SMC pledges to put more capital in Liberty Telecom

DOJ wants online libel junked

Mobiles offer financial lifeline to Asian migrants—study

In the Know: Source code

Recent Stories:

FEU’s Romeo ‘suspended indefinitely’, says coach _{33 mins elapsed}

Seoul press doubtful over North Korea dialogue offer _{2 hours elapsed}

A new way for Filipinos to connect on social media launched _{2 hours elapsed}

Arellano banks on strong start to thrash JRU _{2 hours elapsed}

Waterspout damages 38 houses in Polomolok _{3 hours elapsed}

Healthy gorilla born to 1st time parents at US zoo _{3 hours elapsed}

US teen takes Danish supermodel to prom _{4 hours elapsed}

Santos accepts offers for Neymar; player deciding _{4 hours elapsed}

Tags: banking , Business , Philippines