BDO Unibank Inc., the country’s largest lender, said Friday it will increase the regular cash dividends of common shares to P1 per share starting the second quarter of 2024.
BDO president Nestor Tan said in a news briefing the board approved this new dividend policy going forward.
Prior to this, the bank declared regular cash dividend of common shares amounting to P0.75 per share.
Tan said the bank is cautiously optimistic about the business outlook this year amid continued risks.
He said, however, the bank is expected to sustain loan growth despite higher-for-longer interest rates, while net income margin will remain stable supported by current account and saving account (CASA) growth.
Non-performing loans will also remain under control while the bank’s provisioning and earnings capacity will be adequate to cover potential losses, he said.
Tan said the bank is prepared for potential increase in loan demand as interest rates are expected to eventually go down. He said the bank has enough capital for lending activities.
BDO delivered a net income of P18.5 billion in the first three months of 2024, a 12-percent increase from the same quarter last year on sustained performance of its core businesses.
This translated into an annualized return on common equity of 14.3 percent for the first quarter.
Net interest income increased 13 percent, while gross customer loans expanded 13 percent. Deposits also went up 13 percent, supported by low-cost CASA.