BDO Unibank Inc. (BDO), the Sy family’s financial services arm, delivered a 28.5 percent growth in net income to P73.4 billion last year from the P57.1 billion earned in 2022 on the back of improvements across its core businesses.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its earnings translated to a Return on Common Equity (ROCE) of 15.2 percent, up from 13 percent in the previous year.

Net interest income grew to P186.4 billion as gross customer loans rose by nine percent to P2.85 trillion with growth across all market segments. Total deposits increased by 11 percent to P3.57 trillion, with CASA ratio at 72 percent.

Non-interest income reached P84 billion, supported by fee-based as well as treasury and foreign exchange businesses.

Pre-provision operating profit recorded a 27 percent growth to P113.6 billion, with sustained positive operating leverage.

Revenues expanded at a slightly faster pace than operating expenses growth mostly from volume-related costs, continued network expansion and IT investments.

Asset quality continued to improve, with non-performing loan (NPL) ratio declining to 1.85 percent and NPL coverage increasing to 185 percent with the bank’s conservative provisioning policy.

Common equity strengthened to P509.7 billion, with Capital Adequacy Ratio (CAR) at 14.9 percent and Common Equity Tier 1 (CET1) Ratio at 13.8 percent, well ahead of minimum regulatory levels. Book value per share increased by 12 percent year-on-year to P96.75.

BDO said it continued its sustainability initiatives, with the bank’s successful issuance of its second ASEAN Sustainability Bonds last January.

The bank raised a record P63.3 billion to fund eligible projects, further aiding the country’s sustainable development, including financing of 59 large-scale renewable energy projects, and expanding enterprise-wide efforts to foster positive environmental and social impacts.

BDO added that its strong business franchise and market leadership, healthy capital position, and robust financial performance bolster the bank’s foundation for long-term sustainable growth and profitability, despite continuing challenges in the macroeconomic environment.