BDO sustains steady growth, earnings up 23% in 9 months

Sy-led BDO Unibank Inc. maintained its profitability as net income grew 23 percent to P40 billion in the first nine months of the year.

BDO saw gross customer loans rise by 10 percent year-on-year during the first three quarters, which was largely funded by low-cost current account/savings account (CASA) deposits.

As a result of its high CASA base, the bank’s net interest income increased to P108.1 billion.

Non-interest income went up to P53.2 billion fueled by a 20 percent expansion in fees and insurance premiums, while trading and forex gains were broadly in line with expectation and primarily generated by flow-related business.

BDO’s gross operating income amounted to P161.3 billion. Asset quality improved as NPL ratio went down further to 2.23 percent.

Still, BDO maintained conservative provisioning policy by setting aside provisions of P12.2 billion, resulting in a higher NPL coverage of 152 percent.

BDO has opened a total of 64 branches so far this year, most of which are in rural areas covered by its subsidiary BDO Network Bank Inc.

With these additions, total BDO branches stood at 1,608 as of end-September.

“Despite the bank’s strong performance year to date, management is conscious of external headwinds brought about by slowing global growth, persistent inflation, and lingering uncertainties related to the Covid-19 pandemic,” BDO said.

BDO, however, said its established business franchise and strong balance sheet allows it to overcome near-term risks and achieve long-term sustainable growth.