BDO Unibank Posts P40.7 Billion Net Income in First Half

MANILA, Philippines — BDO Unibank Inc. saw its first-half earnings edge higher to P40.7 billion, a slight increase from P40.6 billion recorded in the same period last year. This performance highlights the bank's resilience, with double-digit loan growth and stronger core revenues offsetting higher provisions set aside for emerging credit risks. The Sy-led bank's return on equity stood at 12.7 percent. Net interest income, the primary revenue driver, climbed by 11 percent year-on-year, fueled by a 15 percent expansion in gross customer loans to P3.9 trillion. BDO noted that this loan growth was broad-based across all segments and outpaced industry expansion. Total deposits rose by 13 percent, with low-cost current and savings account deposits increasing by four percent. Non-interest income also saw a four percent rise, largely supported by a 14 percent increase in contributions from its insurance operations. With operating expenses managed to a single-digit growth pace, BDO’s pre-provision operating profit advanced by 12 percent during the period. However, the bank proactively increased its provisions for potential credit losses as a prudential measure against evolving risks in the operating environment. Despite the increased provisions, asset quality indicators improved. The non-performing loan (NPL) ratio eased to 1.64 percent from 1.75 percent a year earlier, and NPL coverage stood at a robust 132 percent. BDO maintained strong capital buffers, with shareholders' equity rising by eight percent and book value per share increasing to P121.78. Its common equity tier 1 (CET1) ratio remained strong at 13.1 percent. "Backed by strong business fundamentals, a healthy balance sheet and its market leadership position, BDO remains well-positioned to navigate prevailing uncertainties and capture opportunities in an evolving business environment," the bank stated. As of end-March, BDO continued to be the country's largest bank in terms of assets, loans, deposits, and trust funds under management. It operates more than 2,000 consolidated branches and over 7,900 ATMs nationwide. Source: Philstar Business