BDO Unibank, Inc. (BDO) posted earnings of ₱35.2 billion for the 1H 2023, driven by broad-based growth across its core businesses. This translated to a Return on Common Equity of 15.1% compared to 11.3% in the comparable period last year.
Highlights:
- Earnings momentum sustained on robust growth in core businesses
- Return on Common Equity at 15.1%; Book Value per share up 13%
- Asset quality continues to improve with NPL stable and coverage increasing to 174%
- Capital strengthened further with CET1 ratio at 13.9%
Net Interest Income rose to ₱89.5 billion as Gross Customer Loans expanded 8% year-on-year to ₱2.7 trillion while Deposit Liabilities broadened 12% to ₱3.3 trillion. Non-Interest Income grew 11% to ₱38.2 billion due to robust growth in various fee-based and treasury/FX businesses.
Pre-Provision Operating Profit settled at ₱52.4 billion, with revenues continuing to grow faster than operating expenses.
Non-Performing Loan (NPL) ratio dipped quarter-on-quarter to 1.95% from 1.98% while NPL coverage improved to 174% with prudent credit and provisioning policies.
Shareholders’ Equity increased to ₱487.5 billion given profitable operations. Capital Adequacy Ratio and Common Equity Tier 1 (CET1) Ratio strengthened to 15% and 13.9%, respectively, and remain comfortably above regulatory minimum levels. Book Value Per Share increased 13% to ₱91.42.
With improving macro-economic trends exemplified by decelerating inflation, sustained GDP growth and stable foreign exchange and interest rates, the Bank remains poised to capitalize on emerging growth opportunities given its solid balance sheet, strong business franchise and diversified earnings streams.
