BDO Unibank Inc. said profit in the first half of the year reached P21.4 billion, up 405.88 percent from P4.25 billion last year on the back of strong sustainable earnings stream and normalized provisions.
Net interest income hit P64.4 billion, down 3.01 percent from 66.4 billion last year. Net interest margin was at 4.06 percent.
Non-interest income was at P29.7 billion, up 5.59 percent from 27.18 billion last year. The bank said fee-based income grew 20 percent to P16.1 billion, insurance premiums hit P9.2 billion, up 31 percent, while trading and forex gains hit P2 billion.
BDO said it set aside P6.8 billion as souring loan provisions, “lower than the pre-emptive provisions booked in the first half 2020 against possible pandemic-induced delinquencies.”
“Provisions to gross loans in the second quarter was steady at 3.1 percent. Gross non-performing loan (NPL) ratio is at 3.1 percent, still well below the bank’s worst-case expectations of 4-5 percent, while NPL cover remained more than adequate at 100 percent,” BDO said.
Customer loans were at P2.3 trillion. Total deposits hit P2.7 trillion, with current account/savings account (CASA) deposits up 13 percent. CASA ratio is at 84 percent.
BDO said its total capital base was at P412.7 billion, with capital adequacy ratio and common equity tier 1 ratio both increasing to 15 percent and 13.9 percent, respectively, well above regulatory minimum.
“The bank’s book value per common share rose to P92.57 as of end-June compared to P82.28 for the same period last year for a 12 percent year-on-year growth,” BDO said.
The bank’s return on average common equity for the first half improved to 10.75 percent from 2.27 percent in the same period last year,” it added. – Ruelle Castro
