The country’s biggest lender by assets is riding strong momentum in its core intermediation and fee-based services, BDO’s annualized return on common equity (ROCE) climbed from 14.3 percent in the first quarter to 15.8 percent by the end of June this year.
Strong core, asset quality
Higher profits were backed by healthy interest earnings and loans, while asset quality stayed robust.
Total customer loans and total deposits expanded by 13 percent while the portion of low-cost deposits versus the total amount remained at 69 percent.
“BDO’s robust business franchise and strong balance sheet place the bank in a suitable position to capitalize on emerging opportunities to sustain attractive long-term growth and profitability.”
Bad debts in check
Non-Interest Income also grew by 13 percent, driven by increased fee income, treasury gains, and a recovery in life insurance premiums.
Despite elevated interest rates, asset quality stayed stable, with a non-performing loan ratio of 2.06 percent and NPL coverage at 169 percent, outperforming the industry average.
BDO Unibank, Inc. saw a 12 percent increase in shareholders’ equity, with book value per share rising 12 percent year-on-year to ₱102.22.
Last week, the bank successfully issued its third ASEAN Sustainability Bonds, raising ₱55.7 billion to finance and refinance projects aimed at promoting sustainable development in the country.
