Top lender BDO Unibank Inc. of the SM Group posted a 12 percent growth in net income to P18.5 billion in the first quarter of 2024 on the sustained performance of its core businesses.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said this resulted in an annualized Return on Common Equity (ROCE) of 14.3 percent for the first quarter this year.
Net interest income increased by 13 percent with gross customer loans expanding by 13 percent. Meanwhile, deposits expanded by 13 percent, supported by low-cost current account/savings account (CASA).
Non-interest income rose by 11 percent on steady growth of fee-based and treasury and foreign exchange businesses and recovery in life insurance premiums.
Asset quality remained stable quarter-on-quarter with the bank’s continued conservative credit and provisioning policies. Non-performing loan (NPL) ratio stood at 1.88 percent while NPL coverage settled at 181 percent.
Common equity increased by 12 percent on continued profitable operations. Book value per share improved by 12 percent year-on-year to P99.23.
BDO said its mission to “be the preferred bank in every market it serves” anchors its business philosophy of pursuing long-term growth and profitability, while sustaining market leadership backed by a strong balance sheet and diversified business franchise.
The bank 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.
Its earnings translated to a 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 NPL ratio declining to 1.85 percent and NPL coverage increasing to 185 percent with the bank’s conservative provisioning policy.