BDO Unibank, Inc. (BDO) posted a 13 percent year-on-year increase in net income to P11.7 billion for the first quarter of this year, driven by the bank’s core businesses.
“BDO’s sustained earnings performance, robust business franchise, and solid capital base place the bank in a good position for long-term sustainable growth,” the bank said.
Loan portfolio rose by 7 percent to P2.4 trillion on strong demand from corporate borrowers, the recovery in the middle market, and the resilience of the consumer segment.
Deposits went up to P2.8 trillion driven by the 11 percent increase in Current Account/Savings Account (CASA) deposits, now comprising 86 percent of total deposits.
This resulted in net interest income of P33.9 billion, 6 percent higher than a year-ago.
Non-interest income increased by 9 percent to P16.7 billion, driven by fees and insurance premiums. Trading and forex gains were in line with normalized business levels.
Operating expense (OPEX) growth was manageable at 3 percent to P31.8 billion.
Asset quality continued to improve with NPL ratio down to 2.72 percent from 2.81 percent last year. The bank maintained its conservative credit and provisioning policy with provisions at P3.7 billion compared to P2.9 billion a year-ago, resulting in higher NPL coverage at 120.8 percent
Total capital base strengthened to P429.9 billion, with the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio both increasing to 14.6 percent and 13.5 percent, respectively, comfortably above regulatory minimum.
BDO’s Return on Common Equity (ROCE) for the first quarter increased to 11.09 percent from 10.56 percent in the same period last year. The bank’s Book Value per common share rose to P96.47 as of end-March 2022 for a 7 percent year-on-year growth.
BDO is a full-service universal bank which provides a wide range of corporate and retail services such as traditional loan and deposit products, treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, cash cards, credit cards, and online and non-online brokerage services.
BDO has the country’s largest distribution network, with over 1,500 consolidated operating branches and more than 4,400 ATMs nationwide. It also has 16 international offices in Asia, Europe, North America and the Middle East.
The bank also offers digital banking solutions to make banking easier, faster, and more secure for its clients.
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 December 31, 2021.
