The stocks of BDO Unibank, Inc. was one of the most actively traded stocks last week due to the investors’ reaction to the first quarter earning of the Sy-led firm. In fact, P1.341 billion , or 10.038 million shares in total were swapped on the trading floor in a span of 5 days from April 22 to April 26. If we take a look at its week-on-week share price, stocks were up by 1.52% last April 26, from P132 on April 17 to P134. And if it’s year to date, there is a 5.51% increase in BDO’s share price. So, what was the investors’ perception about the earnings of the known bank? Is it something that could affect the future outlook of the firm?
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As the inflation rate eases, many companies are expected to recover. It’s not just the consumer firms who will benefit to this great news but as well as banks like BDO. The reason why it has been one of the most actively traded stock in the market is because investors are starting to see its potential as the inflation continues to ease down. The consumer spending is becoming more sustainable. The nearing election has a big impact to the spending of the depositors as well. The growth of the bank can be seen in its first quarter earnings and investors are happy about the results. If this has an effect to the future outlook of the bank, that is to perform better again to meet the expectations of the investors.
The BDO has performed way better than the expectation of the market. Its leverage reflects the base for its strong and sustained margins. The bank is also the first ever bank in the country to exceed the P3-trillion in total assets. What an overperforming bank, isn’t it? As of the first quarter of 2019, BDO has a total assets of P3.014 trillion and its 8% higher than its last quarter’s P2.797 trillion in 2018. This follows by its net income that jumped by 66% or P9.8 billion in figures from P5.9 billion during the same period in 2018.
The growth of the bank’s net income during the first quarter of the year positioned the firm so that it can prepare to hit a P38.5 billion full-year profit. It would be 17.7% higher than last year’s P32.7 billion actual net income. The income growth that was generated by the bank is a bog factor so they can expand their core banking operations, robust non-interest income, and the recovery of trading gains. The progress of the firm in the coming months is expected to be driven by its fee income, net interest income, and stabilizing trading and foreign exchange gains.