BDO Unibank Inc. expects to continue its firm pace of growth this year based on its first quarter performance and the forecast of higher interest and fee-based income amid strong economic growth. In a media briefing before the bank’s annual stockholders’ meeting, BDO President Nestor Tan said they expect loans to grow by 8 percent to 10 percent this year while net income margins will be supported by asset and CASA growth as well as policy rate hikes. As far as the quality of the bank’s assets and loss absorption capacity are concerned, he said “non-performing loans remain under control while excess provisions, pre-provision operating profit, and capital cushion are more than adequate to cover for potential losses.” Tan said the bank also sees sustainable growth in fee-based businesses while its wealth management business will continue its positive momentum. He noted that BDO’s “new digital capabilities are being rolled-out with more enhancements forthcoming” while “investments in infrastructure, cybersecurity and operating processes (have been) largely completed.” However, Tan said they remain wary of “possible unintended consequences or collateral damage from rising inflation although he noted that the government already has a lot of good programs in place to address this. He also pointed out the global and Philippine economy is out of the woods yet as there are factors that are “beyond our control” such as ongoing geopolitical tensions which affects the supply chain as well as the movement of interest and foreign exchange rates. “But I think we have the right franchise and the right balance to generate income that will allow us to fund our growth. So, basically, we are where we want to be,” Tan said. BDO registered a 41 percent jump in net income to P16.5 billion for the first quarter of 2023 from P11.7 billion in the same period last year on the back of broad-based growth across its businesses. The bank said Return on Average Common Equity (RaCE) advanced to 14.45 percent from 11.09 percent in the comparable period last year. Gross customer loans increased 8 percent to P2.6 trillion while total deposits expanded 14 percent to P3.2 trillion. Given the uncertainty, the Bank has maintained a healthy balance between loan growth and sufficient liquidity for unforeseen events, maintaining its liquidity ratio at 35 percent. Net interest income grew to P43.4 billion from P33.9 billion while non-interest income rose to P18.9 billion from P16.7 billion, bolstered by solid growth in the various fee-based as well as treasury and foreign exchange businesses.