BDO Unibank Inc. (BDO) of the bilyonaryo Sy family continued to deliver another solid performance with its net profit growing to P40 billion in the first nine months of the year on robust results across its core businesses.
Gross customer loans rose 10 percent, largely funded by low-cost current account/savings account (CASA) deposits.
Due to its high CASA base, net interest income went up to P108.1 billion.
Non-interest income grew to P53.2 billion led 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.
Operating expenses climbed to P98.1 billion, as the bank continued its branch expansion activities in underserved markets in the rural areas, and sustained Information Technology spend to support its digital initiatives.
Asset quality improved as the bank’s NPL ratio went down further to 2.23 percent. Still, BDO maintained its 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 this year, most of which are in rural areas covered by its subsidiary BDO Network Bank Inc. This brings the bank’s total branches to 1,608 as of September 30.This is part of the bank’s initiative to help improve financial inclusion, by providing access to financial services in less dense areas.