Banking giant BDO’s first quarter earnings surge, underpinned by core business strength

The Sy family’s BDO Unibank Inc., the country’s biggest lender, was off to a strong start as it reported a 12 percent increase in first quarter net income to P18.5 billion.

 This comes after BDO reported its higher ever annual profit of P73.4 billion. Earnings during the first quarter brought the bank's return on common equity to 14.3 percent. 

Meanwhile, net interest income saw a 13 percent increase amid the 13 percent growth in gross customer lans and deposits, bolstered by low-cost current and savings account deposits. 

Non-interest income also climbed by 11 percent, driven by growth in fee-based activities and a rebound in life insurance premiums. 

Asset quality remained solid, with a stable non-performing loan ratio of 1.88 percent and NPL coverage at 181 percent, reflecting a conservative credit approach. 

The bank's common equity grew by 12 percent, and book value per share improved significantly.