BDO Posts 13% Increase, ₱11.7B Net Income for 1Q
Driven by its core businesses, full-service universal bank BDO Unibank, enjoyed a 13% year-on-year (YoY) increase in net income for the 1Q of 2022. The net income for that period is now valued at P11.7 billion.
According to reports, the BDO Unibank’s loan portfolio rose to P2.4 trillion. This 7% increase was attributed to the strong demand from corporate borrowers, the resilience of the consumer segment, and the recovery in the middle market. When it comes to deposits, the 11% YoY increase in Current Account/Savings Account (CASA) deposits resulted in growth totaling P2.8 trillion. CASA deposits now comprise 86% of total deposits. As a result, the net income was P33.9 billion, a 6% increase from last year’s figures.
Non-interest income is now at P16.7 billion, a result of a 9% increase. This is a result of fees and insurance premiums.
Trading and forex gains were in line with normalized business levels. Meanwhile, operating expense (OPEX) growth was manageable at 3% YoY to P31.8 billion.
Asset quality continued to improve with NPL ratio down to 2.72% from 2.81% last year.
The Bank maintained its conservative credit and provisioning policy with provisions at P3.7 billion. This is compared to P2.9 billion a year ago, resulting in higher NPL coverage at 120.8%.
Total capital base strengthened to ₱429.9 billion, with the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio both increasing to 14.6% and 13.5%, respectively. This is comfortably above the regulatory minimum.
BDO’s Return on Common Equity (ROCE) for the 1Q 2022 increased to 11.09% from 10.56% 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% year-on-year growth.
BDO is in a good position for long-term sustainable growth. This is due to sustained earnings performance, robust business franchise, and solid capital base place the Bank
BDO is a full-service universal bank that provides a wide range of corporate and retail services such as traditional loan and deposit products, treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, cash cards, credit cards, and online and non-online brokerage services.
BDO has the country’s largest distribution network, with over 1,500 consolidated operating branches and more than 4,400 ATMs nationwide. It also has 16 international offices in Europe, NorthAmerica, and the Middle East. In Asia, it has full-service branches in Hong Kong and Singapore.
The Bank also offers digital banking solutions to make banking easier, faster, and more secure for its clients. BDO ranked as the largest bank in terms of total assets, loans, deposits, and trust funds under management. This is based on published statements of condition as of December 31, 2021.
For more information, please visit www.bdo.com.ph