BDO’s profit surges to P73 billion driven by core businesses
BDO Unibank Inc. reported a robust performance in 2023, with net income surging by 38.5 percent to reach P73.4 billion, compared to P57.1 billion in the previous year. This impressive growth was attributed to the strong performance of the bank’s core businesses, reflecting its resilience and adaptability in navigating dynamic market conditions.
The Sy-led bank disclosed that its return on common equity rose to 15.2 percent, marking a 13 percent increase from 2022. Net interest income experienced significant growth, reaching P186.4 billion, while noninterest income stood at P84 billion, primarily driven by fee-based services and robust performance in treasury and foreign exchange activities.
BDO highlighted that gross customer loans expanded by an impressive 9 percent to reach P2.85 trillion, surpassing industry averages. This growth was observed across all market segments, underscoring the bank’s broad-based lending activities and market penetration strategies.
Pre-provision operating profit soared by 27 percent to P113.6 billion, reflecting strong revenue growth outpacing operating expenses. The bank attributed its operating expenses mainly to volume-related costs, ongoing network expansion initiatives, and investments in information technology infrastructure.
The bank expressed confidence in its long-term sustainable growth and profitability, citing its strong business franchise, market leadership, healthy capital position, and robust financial performance as key drivers of its success.
Total deposits expanded by 11 percent to reach P3.57 trillion, with the current account savings account (CASA) ratio standing at an impressive 72 percent. BDO emphasized that its asset quality continued to improve, with a conservative provisioning policy leading to a reduction in the nonperforming loan (NPL) ratio to 1.85 percent and an increase in NPL coverage to 185 percent.
BDO’s common equity remained robust at P509.7 billion, with key capital adequacy ratios, including common equity tier 1, exceeding regulatory requirements at 14.9 percent and 18.8 percent, respectively.
The bank’s extensive network, comprising more than 1,700 consolidated branches and over 4,800 automated teller machines nationwide, along with its 16 international offices across Asia, Europe, North America, and the Middle East, positions it as a leading player in the Philippine banking sector.
Despite the challenging market conditions, BDO remains steadfast in its commitment to delivering value to its stakeholders, as evidenced by its resilient financial performance. However, BDO shares experienced a decline of P4.10, or 2.57 percent, to close at P149.50 each on Monday, reflecting broader market sentiment amid a slight drop in the benchmark Philippine Stock Exchange index.
Business News: BDO’s profit surges to P73 billion driven by core businesses
