BDO Unibank Inc., the Philippines’ largest lender by assets, said net income in the nine months through September surged 35 percent year-on-year to P53.9 billion on the back of steady growth across its core businesses.
The listed bank of the Sy Group said pre-provision operating profit reached P80.6 billion, with revenue growth continuing to outpace the increase in cost. The bank continues to set aside provisions in line with its conservative credit and provisioning policies.
Return on common equity was up at 15.1 percent compared with 12.4 percent in the year-earlier period.
BDO said net interest income climbed to P137.4 billion as customer loans increased by 7.5 percent year-on-year to P2.7 trillion while deposits expanded 12 percent to P3.4 trillion. Non-interest income settled at P57.9 billion, supported by various fee-based and treasury and foreign exchange trading businesses.
Non-performing loan ratio stood at 1.99 percent despite the higher interest rate environment, while NPL coverage improved to 176 percent.
Common equity increased to P494.3 billion given continued profitable operations. Book value per share increased 13 percent to P93.83.
Capital adequacy ratio and common equity tier 1 ratio strengthened to 15.6 percent and 14.5 percent, respectively, with ample capital buffers compared with regulatory minimum levels.
BDO remains optimistic about its prospects moving forward despite persistent macroeconomic challenges. It is confident it could “capitalize on opportunities given its strong balance sheet and diversified business franchise.”
