The Sy family-backed BDO Unibank, the country’s biggest lender by assets, opened 2026 with a modest earnings gain, as strong lending and fee-related businesses helped offset heavier provisioning tied to a more cautious risk stance.
The bank reported P20.1 billion in first quarter net income, up 2 percent from a year earlier, with return on average common equity at 12.8 percent.
Core growth stays solid
Net interest income increased 11 percent, driven by a 16 percent rise in gross customer loans to P3.8 trillion. Growth was broad-based across all segments, reinforcing the bank’s lending momentum.
Deposits climbed 15 percent, with current and savings accounts up 7 percent, supporting a stable funding base.
Provisions weigh on bottom line
Fees and other income streams remained steady, with non-interest income rising 6 percent. Insurance operations stood out, posting a 27 percent increase and boosting overall revenue mix.
Profit growth was tempered by higher provisions, which the bank described as a pre-emptive move to strengthen buffers amid evolving geopolitical risks. This reflects a more defensive posture despite healthy operating trends.
Asset quality improves further
The non-performing loan ratio declined to 1.68 percent from 1.77 percent a year earlier. Coverage remained strong at 132 percent, signaling ample protection against potential credit losses.
Shareholders’ equity grew 9 percent, lifting book value per share by 8 percent to P119.36. The common equity tier one ratio stood at 13.3 percent, providing room to support continued expansion.
—Edited by Miguel R. Camus
