Best Bank: BDO-EPCIB
This year’s award for best bank in the Philippines goes to Banco De Oro (BDO) for a transformational year. The winner for the past several years, Bank of the Philippine Islands remains a first-class bank and one of the clear market leaders against which BDO is providing increasingly stiff competition.Previously a mid-sized universal banking organization, parent company SM Investments Corporation acquired control of BDO competitor Equitable PCI Bank in September 2006. The two banks are undergoing the largest merger in Philippine banking history and that will create one of the country’s largest and most profitable banking groups.
Although BDO is the smaller entity, its management will be running the enlarged group and a review of BDO’s latest fiscal 2006 performance explains why. Total assets grew 30%, as did operating income, and net income increased 23% over 2005. BDO reported a 13.7% return on equity, non-performing loans of just 1.65%