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Author Topic: STOCK MARKET PICK REVIEW : BDO Banco de ORO Unibank Updates  (Read 39 times)

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RichPoorDad

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STOCK MARKET PICK REVIEW : BDO Banco de ORO Unibank Updates
« on: November 02, 2017, 02:57:45 PM »
STOCK MARKET PICK : BDO

Background:  Banco de Oro Unibank (BDO) is a universal bank that provides a wide range of corporate, commercial and retail services. BDO is a member of the SM Group of companies, one of the Philippines’ largest conglomerates with business interests in commercial centers, retail and merchandising, financial services, real estate development and tourism. As of end 2016, BDO was the largest bank in terms of assets, loans, deposits, trust assets and capital. It had a total of 1,104 branches and offices and 3,655 ATMs


Major beneficiary of higher loan growt

Demand for loans is picking up given higher investments in the country and growing demand from consumers. BDO is expectedto be one of the major beneficiaries given its extensive network, liquid balance sheet, low funding cost, healthier capital base and track record of delivering above average loans growth. Following BDO’s Php60Bil stock rights offering in 2017, the bank reported that its CET1 and total CAR improved to 14.0% and 15.6% respectively. This is already above the 11% (by 2019) minimum CET1 requirement set by the BSP.


High Earnings Quality

Relative to other banks, we believe that BDO’s earnings quality is higher given a larger portion of its revenues are generated from recurring income. Note that in 2016 the bank’s net interest income and fee-based revenues composed 89% of the its revenues. Meanwhile, the bank also has a high NPL coverage in spite of its low NPL ratio.


Leveraged for growth

BDO’s focus on the retail market entails high fixed cost. This is evidenced by its cost to income ratio of 65%, which is significantly
higher than the 55% average posted by BPI and MBT. While this may prove to be a handicap during economic downturns, it will act as a lever during times of economic expansion. BDO is expected to deliver one of the fastest earnings growth going forward, as above average revenue growth is expected to outpace operating expense growth
« Last Edit: November 03, 2017, 05:22:03 PM by RichPoorDad »
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STOCK MARKET PICK REVIEW : BDO Banco de ORO Unibank Updates
« on: November 02, 2017, 02:57:45 PM »

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DonaldTrumpPH

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Re: STOCK MARKET PICK REVIEW : BDO
« Reply #1 on: November 02, 2017, 03:01:36 PM »
I like BDO a lot.. lots of potential for growth. marami akong acct sa kanila

PesoRepublic.com | Your smart guide to money matters and entrepreneurship.

Re: STOCK MARKET PICK REVIEW : BDO
« Reply #1 on: November 02, 2017, 03:01:36 PM »

 

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