BDO Unibank, Inc. (BDO) reported a net income of P53.9 billion for the first nine months of 2023, higher than P40.0 billion in the same period a year ago. This resulted in a Return on Common Equity (ROCE) of 15.1% compared to 12.4% in 2022.
Net Interest Income increased to P137.4 billion with Customer Loans growing 7.5% year-on-year to P2.7 trillion and Deposits expanding 12% to P3.4 trillion.
Non-Interest Income settled at P57.9 billion, supported by various fee-based and treasury/FX businesses.
Pre-Provision Operating Profit amounted to P80.6 billion, with revenue growth continuing to outpace cost growth.
Non-Performing Loan (NPL) ratio remained stable at 1.99% despite the higher interest rate environment, while NPL coverage improved to 176%. The Bank continues to set aside provisions in line with its conservative credit and provisioning policies.
Common Equity increased to P494.3 billion given continued profitable operations. Book Value Per Share (BVPS) increased 13% to P93.83. Capital Adequacy Ratio and Common Equity Tier 1 (CET1) Ratio strengthened to 15.6% and 14.5%, respectively, with ample capital buffers vs. regulatory minimum levels.
While macroeconomic challenges persist, the Bank remains cautiously optimistic and is well-positioned to capitalize on opportunities given its strong balance sheet and diversified business franchise.
