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Tuesday, April 23, 2024

BDO’s profit hits record P73.4b on strong loan, deposit growth

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BDO Unibank Inc. (BDO), the country’s largest lender controlled by the Sy family, logged a record net income of P73.4 billion in 2023, up 28.5 percent from P57.1 billion in 2022 on broad-based growth across core businesses.

This translated into a return on common equity (ROCE) of 15.2 percent, up from 13 percent in the previous year.

Net interest income grew to P186.4 billion as gross customer loans rose 9 percent to P2.85 trillion, with growth across all market segments.

Total deposits increased 11 percent to P3.57 trillion, with current account and savings account (CASA) ratio at 72 percent. Non-interest income reached P84 billion, supported by fee-based and treasury/foreign exchange businesses.

Pre-provision operating profit recorded a 27-percent growth to P113.6 billion, with sustained positive operating leverage.

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Revenues expanded at a slightly faster pace than operating expenses growth mostly from volume-related costs, continued network expansion and IT investments.

Non-performing loan (NPL) ratio declined to 1.85 percent as NPL coverage increased to 185 percent with the bank’s conservative provisioning policy.

Common equity increased to P509.7 billion, with capital adequacy ratio (CAR) at 14.9 percent and common equity tier 1 (CET1) ratio at 13.8 percent, ahead of minimum regulatory levels.

BDO continued its sustainability initiatives, with the recent issuance of its second ASEAN sustainability bonds in January, where it raised a record P63.3 billion to fund eligible projects.

BDO said despite the continuing challenges in the macroeconomic environment, its strong business franchise and market leadership, healthy capital position and robust financial performance would bolster the bank’s foundation for long-term sustainable growth and profitability.

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