BDO posts record high profit of P57.2 B

BDO Unibank Inc. recorded a 33.6 percent jump in earnings to a record P57.2 billion last year from P42.8 billion a year ago, driven by robust growth across its core businesses.

This allowed the bank’s board of directors to declare a higher regular cash dividend of P0.75 per share from the previous P0.30 per share.

The bank, owned by the family of the late retail and banking magnate Henry Sy, said earnings are broad-based and diversified as strong results continue across all core businesses.

BDO reported a 13.6-percent rise in net interest income to P149.23 billion last year from P131.35 billion in 2021, as well as a 16.6-percent increase in non-interest income to P71.53 billion from P61.35 billion, bolstered by strong performance of fee income, as well as foreign exchange and fixed income client-flow businesses.

Operating expenses of the listed bank grew by 9.4 percent to P131.21 billion from P119.87 billion.

According to BDO, provision for impairment losses slipped by 4.1 percent to P16.37 billion in 2022 from P17.03 billion in 2021 as asset quality improved further.

The bank’s non-performing loan (NPL) ratio improved to 1.95 percent last year from 2.8 percent in 2021, while its NPL coverage strengthened to 167 percent.

BDO’s loans and receivables increased by 9.2 percent to P2.62 trillion from P2.4 trillion on broad-based growth due to the economic reopening with the lifting of strict COVID quarantine and lockdown protocols.

Its deposit base booked a double-digit 14.2-percent growth to P3.22 trillion in 2022 from P2.82 trillion in 2021.

The bank’s return on equity (ROE) improved to 13 percent last year from 10.5 percent in 2021 and exceeded the prepandemic level of 12.8 percent in 2019.

The bank’s total resources climbed by 12.4 percent to P4.07 trillion last year from P3.62 trillion in 2021.

According to BDO, total capital expanded to P461.5 billion, with capital adequacy ratio (CAR) and common equity tier 1 (CET1) ratio both comfortably above regulatory minimum levels at 14.5 percent and 13.4 percent, respectively.

Book value per share went up by nine percent to P86.20 year-on-year.

The bank vowed to remain alert to the challenges posed by supply constraints, higher inflation, tighter external liquidity, rates or foreign exchange volatility and geopolitical strains

“While macroeconomic challenges remain with persistent inflation and foreign exchange and interest rate volatility, BDO believes that its established business franchise and strong balance sheet will allow the bank to surmount near-term risks and capitalize on structural growth opportunities to attain long-term sustainable growth,” it said.

Meanwhile, the country’s largest bank will pay a regular quarterly cash dividends of P0.75 per share beginning the first quarter and payable on March 31.