BDO’s growth strategy has centred on customer focus and best execution. Along with selective acquisitions and organic growth, this has allowed BDO to report above-average growth rates and enhanced market share. The bank’s RoE improved from 12% in 2005 to 14% last year, while net profits rose 22% in the same period, with a 28.4% increase in Tier 1 capital on a pro-forma basis.
To improve shareholder value, BDO is pursuing a long-term strategy to seek out new markets and develop relevant products. This entails long-term investment as well, which will result in higher business volumes and profitability over time.
Last year, BDO merged with Equitable PCI Bank and opened 14 BDO on-site outlets, providing additional venues for ancillary services beyond regular banking hours. The BDO-EPCI merger, the biggest ever in the Philippine banking industry, provided the new group with greater market reach and operational scale, factors that it believes will create a competitive advantage. The combination of the strengths of these two banks is expected to result in market-leading positions in core business lines, while providing the scale needed to enhance its business development and servicing capabilities.
Last year, the group took several key initiatives, having launched the BDO Asenso Kabayan programme to make it the preferred bank of overseas Filipino workers and their beneficiaries. The bank also strengthened its IT infrastructure and application systems, with an upgrade in capacity and the implementation of new systems to handle increasing transaction volumes and gain higher operational efficiencies.
