BDO Unibank Inc., the Philippines’ largest lender by assets, announced a 3 percent increase in net profit for the first half of the year, reaching P40.61 billion.
The growth was driven by strong performance in core businesses, although gains were offset by ongoing investments in market expansion and IT spending aimed at enhancing operational efficiency.
The bank’s net interest income rose 7 percent to P98.1 billion, supported by a 14 percent increase in gross loans to P3.4 trillion. This growth was seen across all market segments. Total deposits also grew by 8 percent, reaching P4.029 trillion.
Other operating income, which includes trust fees and service charges, climbed 15 percent to P38 billion. However, foreign exchange income took a significant hit, dropping 64 percent to P1.8 billion. Income from insurance operations, on the other hand, rose 19 percent to P3.9 billion.
Operating expenses grew 15 percent, totaling P82.4 billion.
Despite these positive results, key profitability metrics showed a decline. Return on common average equity and return on average assets dropped to 13.92 percent and 1.64 percent, respectively, due to slower growth in net income compared to the increase in equity and assets.
The bank also experienced higher funding costs, leading to a decrease in its net profit margin, which fell to 22.17 percent from 23.37 percent last year.
