BDO Unibank Inc., the largest lender in the Philippines controlled by the Sy Group, said Monday net income jumped 47 percent in the first half of 2023 to P35.2 billion from P23.9 billion a year ago, on sustained strength of its business segments.
“With improving macro-economic trends exemplified by decelerating inflation, sustained GDP growth and stable foreign exchange and interest rates, the bank remains poised to capitalize on emerging growth opportunities given its solid balance sheet, strong business franchise and diversified earnings streams,” BDO said in a disclosure to the stock exchange.
The first-half bottomline translated into a return on common equity of 15.1 percent, higher than 11.3 percent in the same period last year.
Net interest income increased to P89.5 billion as gross customer loans expanded 8 percent year-on-year to P2.7 trillion, while deposits rose 12 percent to P3.3 trillion.
Non-interest income also grew 11 percent to P38.2 billion, led by robust growth in various fee-based and treasury/foreign exchange businesses.
Pre-provision operating profit reached P52.4 billion, with revenues continuing to grow faster than operating expenses.
Non-performing loan ratio declined quarter-on-quarter to 1.95 percent from 1.98 percent, while NPL coverage improved to 174 percent, with prudent credit and provisioning policies.