Core businesses lift BDO profit to P73B

BDO Unibank Inc. saw its net income expand by 38.5 percent to P73.4 billion last year, from P57.1 billion in 2022, due to the strong performance of its core businesses.

This translated to a return on common equity of 15.2 percent, up 13 percent from 2022, the Sy-led bank said in a disclosure on Monday.

Net interest income climbed to P186.4 billion while noninterest income stood at P84 billion, driven by its fee-based and treasury and foreign exchange businesses.

Gross customer loans grew by an above-industry rate of 9 percent to P2.85 trillion, with all market segments posting increments, BDO said.

Pre-provision operating profit soared 27 percent to P113.6 billion, while revenues grew at a “slightly faster pace than operating expenses growth.”

Operating expenses went mainly to volume-related costs, ongoing network expansion, and information technology investments.

BDO’s “strong business franchise and market leadership, healthy capital position, and robust financial performance” would continue boosting its “long-term sustainable growth and profitability,” the Sy-led financial institution said.

Total deposits expanded 11 percent to P3.57 trillion, with the current account savings account (CASA) ratio at 72 percent.

Asset quality continued to improve thanks to the bank’s conservative provisioning policy, it added. Consequently, the bank’s nonperforming loan (NPL) ratio shrank to 1.85 percent while NPL coverage increased to 185 percent.

BDO’s common equity remained strong at P509.7 billion, while key ratios — capital adequacy and common equity tier 1 — were also ahead of regulatory levels at 14.9 percent, and 18.8 percent, respectively.

The bank currently operates more than 1,700 consolidated branches and over 4,800 automated teller machines across the country in addition to 16 international offices in Asia, Europe, North America, and the Middle East.

BDO shares were down P4.10, or 2.57 percent, at P149.50 each on Monday amid a 0.31 percent drop in the benchmark Philippine Stock Exchange index.