BDO Unibank, Inc. (BDO) posted a 13 percent year-on-year (YoY) increase in net income to P11.7 billion for the 1Q 2022, driven by the Bank’s core businesses.
Loan portfolio rose by 7 percent to P2.4 trillion on strong demand from corporate borrowers, the recovery in the middle market, and the resilience of the consumer segment. Deposits went up to P2.8 trillion driven by the 11 percent YoY increase in Current Account/Savings Account (CASA) deposits, now comprising ~86 percent of total deposits. This resulted in net interest income of P33.9 billion, 6 percent higher than a year-ago.
Non-interest income increased by 9 percent to P16.7 billion, driven by fees and insurance premiums. Trading and forex gains were in line with normalized business levels.
Operating expense (OPEX) growth was manageable at 3 percent YoY to P31.8 billion.
Asset quality continued to improve with NPL ratio down to 2.72 percent from 2.81 percent last year. The Bank maintained its conservative credit and provisioning policy with provisions at P3.7 billion compared to P2.9 billion a year-ago, resulting in higher NPL coverage at 120.8 percent.
Total capital base strengthened to P429.9 billion, with the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio both increasing to 14.6% and 13.5 percent, respectively, comfortably above regulatory minimum.
BDO’s Return on Common Equity (ROCE) for the 1Q 2022 increased to 11.09 percent from 10.56 percent in the same period last year. The Bank’s Book Value per common share rose to P96.47 as of end-March 2022 for a 7 percent year-on-year growth.
BDO’s sustained earnings performance, robust business franchise, and solid capital base place the Bank in a good position for long-term sustainable growth.
