BDO’s net income climbed by 47% to P35.2 billion in first six months

BDO Unibank Inc., the banking arm of the SM Group, said Monday net income jumped 47 percent in the first half of 2023 to P35.2 billion from P23.9 billion in the same period last year, on sustained strength of business segments.

“With improving macro-economic trends exemplified by decelerating inflation, sustained GDP growth and stable foreign exchange and interest rates, the bank remains poised to capitalize on emerging growth opportunities given its solid balance sheet, strong business franchise and diversified earnings streams,” BDO said in a disclosure to the stock exchange.

It said the first-half bottom line translated into a return on common equity of 15.1 percent, higher than 11.3 percent in the same period last year.

Net interest income increased to P89.5 billion as gross customer loans expanded 8 percent year-on-year to P2.7 trillion, while deposits rose 12 percent to P3.3 trillion.

Non-interest income also grew 11 percent to P38.2 billion, led by robust growth in various fee-based and treasury/foreign exchange businesses.

Pre-provision operating profit reached P52.4 billion, with revenues continuing to grow faster than operating expenses.

Non-performing loan ratio declined quarter-on-quarter to 1.95 percent from 1.98 percent, while NPL coverage improved to 174 percent, with prudent credit and provisioning policies.

Shareholders’ equity increased to P487.5 billion, given the profitable operations. Capital adequacy ratio and common equity tier 1 ratio strengthened to 15 percent and 13.9 percent, respectively, and remained above regulatory minimum levels. Book value per share increased 13 percent to P91.42.

BDO has the country’s largest distribution network, with over 1,600 consolidated operating branches and more than 4,700 ATMs nationwide. It also has 16 international offices including full-service branches in Hong Kong and Singapore.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of March 31, 2023.