BDO seen to hit P8.1M 2010 net income target
MANILA – Banco de Oro Unibank (BDO) Chairperson Teresita Sy-Coson believes they can hit their P8.1 billion net income target this year due to the positive performance across all their businesses.
“We will hit the target,” she told reporters on the sidelines of Wednesday’s launch of the BDO China UnionPay (CUP) Credit Card.
The bank’s net income target this year is 34 percent higher than its P6 billion profit in end-2009.
As of end-September this year, the bank registered a net profit of P6.4 billion, 58 percent jump over year-ago’s P4 billion due to “sustained growth in business volumes amid a tempered hike in operating expenses.”
The bank posted its record-high net income in 2007 at P6.7 billion and Coson said “that is not enough for us to continue.”
“We have to make a better bottomline in order to survive. Without the increment we would be going backwards and so in order to survive nicely you always have to have an increment in you revenues and your bottom line. It’s part of the business,” she stressed.
For 2011, Sy-Coson declined to give their target but said it would still be double digit.
Relatively, BDO now offers CUP credit card, which is targeted for people traveling to China and Chinese tourists and businessmen in the Philippines.
Unlike other domestic banks issuing CUP credit card, Sy-Coson said they not only issue the card but also do acquisition, which allows card holders to use their credit card to shop in numerous merchants in the country on the assurance that BDO will responsible in footing the bill in their names.
The BDO chair said partnership with CUP is “significant” because it would further boost the bank’s business since the said card is the largest issuer in China.
“It just happened that it originated in China, but it is more an Asian product… As long as the transactions will go through the BDO, we are happy,” she said.
BDO will offer two CUP credit cards namely the Gold and Diamond cards, which have a P2,400 and P5,000 membership fee, respectively. However, the membership fee will be waived in the first three years.
To date, BDO’s card base is over a million, the largest among domestic banks, and has a market share of 41 percent on acquiring business.*PNA
