BDO Unibank nine-month profit rises 0.8% to P63.6 billion
The Philippine lender's January to September net income reached P63.6 billion, a marginal increase from last year, driven by significant loan book expansion.
Marginal Earnings Increase
BDO Unibank Inc. reported a slight rise in its net income for the nine months ending September, reaching P63.6 billion. This represents a 0.8 percent increase from P63.1 billion recorded in the same period last year, according to the Sy-led bank. The bank's return on equity (ROE), a measure of financial performance, stood at 13.1 percent during this period.
Strong Lending and Deposit Growth
The bank's loan portfolio expanded by 16 percent to P4.1 trillion, with double-digit lending growth across all business segments. This growth surpassed the banking industry's 11 percent loan expansion for the period. Net interest income consequently increased by 11 percent year-on-year, reaching P166.22 billion.
Total deposits also grew by 11 percent to P4.57 trillion, with current and savings accounts contributing a five percent increase to the bank's funding base.
Improved Asset Quality and Capital
Despite its aggressive lending, BDO improved its asset quality, with the nonperforming loan (NPL) ratio decreasing to 1.6 percent from 1.77 percent a year earlier. The bank maintained a stable NPL coverage ratio of 132 percent, indicating sufficient reserves for potential credit losses.
BDO allocated P17.7 billion for impairment provisions, including pre-emptive measures taken earlier in the year due to the Middle East crisis. Shareholders' equity increased by six percent, and book value per share rose by six percent to P123.6. The common equity tier 1 ratio was 12.6 percent.
Philippine Credit Demand Sustained
BDO's loan expansion, which outpaced the broader banking sector, highlights the strong demand for credit within the Philippine economy. This trend suggests ongoing business and consumer activity, offering insights for other financial institutions and companies operating in the region.
The bank's enhanced asset quality, even with increased lending, indicates sound risk management practices. This financial strength positions BDO to pursue its long-term growth plans.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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