BDO Unibank Inc. posted a slightly firmer net income of P40.7 billion in the first half from P40.6 billion a year earlier, driven by strong loan growth and higher operating income but tempered by increased provisions as a prudential measure against evolving risks.
In a disclosure on Monday, the country's largest bank said the first-half performance reflected the continued strength and resilience of its core businesses, with a return on equity as of end-June of 12.7 percent.
Strong operating momentum was said to have been sustained with gross customer loans expanding 15 percent year on year to P3.9 trillion, outpacing industry growth and supported by double-digit increases across all business segments.
Net interest income rose 11 percent from a year earlier, driven by mid-teens loan growth, while total deposits increased 13 percent while current and savings account deposits expanded by four percent.
Non-interest income climbed four percent, led by a 14-percent increase in insurance operations.
Pre-provision operating profit rose 12 percent, supported by disciplined cost management that contained operating expense growth at a single-digit pace.
The bank said asset quality continued to improve, with its nonperforming loan (NPL) ratio declining to 1.64 percent from 1.75 percent a year earlier, while NPL coverage during the first six months stood at 132 percent.
Shareholders' equity increased by eight percent, lifting book value per share to P121.78. The bank's common equity Tier 1 ratio, a measure of capital strength, stood at 13.1 percent at the end of June.
"Backed by strong business fundamentals, a healthy balance sheet, and its market leadership position, BDO remains well-positioned to navigate prevailing uncertainties and capture opportunities in an evolving business environment," the bank said.
BDO shares surged P2.20, or 1.79 percent, to close at P125.20 each on Monday amid a 0.54 percent rise for the benchmark Philippine Stock Exchange index.
