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BDO’s net profit surged to P32.4 billion in three quarters

BDO Unibank Inc., the country’s largest lender controlled by the Sy family, said Monday earnings returned to pre-pandemic levels after it posted a 95-percent growth in net income in the first nine months to P32.4 billion from P16.6 billion a year ago.

It said with the latest performance, it surpassed the 2020 net income of P28.2 billion that was pulled down by pre-emptive provisions of P30.2 billion against potential delinquencies from the pandemic.

BDO said in a statement the expansion in the first three quarters was driven by its resilient business franchise and normalized provisions. It said the business outlook “turns positive with increasing vaccination rates and improving mobility.”

Gross customer loans outpaced the industry with a 5-percent year-on-year increase while total deposits went up by 6 percent, driven by the 14-percent expansion in current account/savings account deposits that now comprise 85 percent of total deposits.

Non-interest income increased by 13 percent year-on-year, while trading and forex gains normalized to P2.8 billion.

Total capital base strengthened to P422.3 billion, with common equity tier 1 ratio at 13.8 percent, above the regulatory minimum.

The bank’s book value per common share went up to P94.76 as of end-September from P84.82 in the same period last year, for a 12-percent growth.

Return on average common equity in the first nine months improved to 10.72 percent from 5.97 percent in the same period last year.

The bank sustained investments in its IT/digital infrastructure and expanded its digital capabilities to further elevate customer experience and raise productivity. The bank launched early this year its mobile wallet BDO Pay.

BDO clients can now enjoy paperless in-branch transactions, card-less ATM transactions using biometrics and QR codes, and fully digital account opening. Julito G. Rada

The bank said it vaccinated 95 percent of its employees against COVID-19, thus raising the level of safety for clients and bank personnel.

Topics: BDO Unibank Inc. , net income , COVID-19 , vaccination rates
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