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Philippine's best domestic bank 2018: BDO Unibank

BDO Unibank

BDO Unibank is the dominant force in Philippines banking, accounting for 18% of industry resources, 22% of gross customer loans, 19% of deposits and 34% of total assets under management.

Under chief executive and president Nestor Tan, it continues to expand its presence – at the end of May, it had 1,217 onshore branches and 26 offices in Asia, Europe and the Middle East – and to consolidate its position as the leading domestic provider of insurance broking, private banking and credit cards.

Its top-line data remains as impressive as ever: in 2017, BDO reported net income of P28.1 billion ($525 million), benefiting from strong growth across all business segments and the lowest funding costs among its peers. And it continued its strong performance in 2018: first-half net interest income jumped 19% year on year to P46 billion, driven by a 20% rise in customer loans.

At the end of June, it had a capital adequacy ratio of 14%, and its non-performing loan ratio inched down to 1.2%. BDO continues to outpace and outflank its peers, with a market capitalization nearly double that of rival Metrobank, and 25% larger than Bank of the Philippine Islands.

It is also worth noting that the lender, which started life in 1968 as a thrift bank with just two branches in Manila, remains true to its roots: BDO is the leading provider of remittance services to the nation’s sizeable diaspora, as well as of basic banking services to rural businesses and households. Always one to look to the future, BDO broke new ground in December 2017, issuing $150 million-worth of green bonds, which it will use to finance climate change projects, including the construction of green buildings and renewable energy projects.