BDO UNIBANK, Inc. saw its net profit rise by 11.98% in the second quarter amid continued growth in its core businesses and higher fee income, it reported on Monday.
The bank’s attributable net income stood at P20.94 billion in the second quarter, up from P18.7 billion in the second quarter last year, BDO’s quarterly report disclosed to the stock exchange showed.
“BOO’s robust business franchise and strong balance sheet place the bank in a suitable position to capitalize on emerging opportunities to sustain attractive long-term growth and profitability,” the bank said in a statement.
BDO’s second-quarter performance brought its attributable net profit for the first half to P39.44 billion, rising by 12.06% from the P35.195 billion booked in the same period last year.
The growth was driven by “stronger momentum from its core intermediation and fee-based service businesses,” the bank said.
This translated to a return on average common equity of 15.05%, down from 15.1% a year prior, and a return on average assets of 1.73%, steady from the comparable year-ago level.
The bank’s net interest income grew by 9.78% to P50.61 billion in the second quarter from P46.1 billion in the same period last year on the back of a 19% increase in interest earnings, which was mainly driven by higher income from loans and trading.
Net interest margin stood at 4.64% at end-June, inching down from 4.65% a year ago.
BDO’s non-interest income likewise rose by 16.11% year on year to P22.35 billion in the second quarter from P19.24 billion, supported by higher earnings from fees and foreign exchange, among others.
Meanwhile, its operating expenses increased by 15.05% to P43.49 billion from P37.8 billion.
BDO’s gross customer loans expanded by 13% at end-June amid growth across all market segments, it said.
“Asset quality remained stable despite elevated interest rates. Nonperforming loan (NPL) ratio settled at 2.06%, while NPL coverage stood at 169%, better than the industry average,” it added.
On the funding side, total deposits also grew by 13% in the first semester, driven by the 15% growth in demand deposits and the 41% increase in time deposits. Its current account, savings account or CASA ratio was at 69% in the period.
BDO’s total assets went up by 5.24% to P4.71 trillion at end-June from P4.48 trillion at end-2023.
Total equity stood at P547.33 billion.
The bank’s capital adequacy ratio was at 14.81% at end-June, down from 14.97% a year prior, as the growth in risk-weighted assets outpaced the increase in its capital.
BDO’s shares finished at P140.50 each on Monday, dropping by P5.50 or 3.77% from the previous close. — AMCS
