MANILA, Philippines — BDO Unibank Inc. sustained its earnings momentum in the first half, posting a net income of P40.6 billion, a three percent increase from P39.4 billion a year ago, driven by the continued strength of its core businesses.
In a disclosure, the country’s largest lender attributed the steady performance to broad-based loan growth and increased non-interest income, although earnings were tempered by ongoing investments in market expansion and initiatives to boost operational efficiency through digital infrastructure.
Return on average common equity stood at 13.9 percent during the six-month period.
BDO’s gross customer loans rose by 14 percent year-on-year to P3.4 trillion, with double-digit growth recorded across all market segments.
Deposits expanded by eight percent to breach the P4-trillion mark, with the low-cost CASA (current account/savings account) ratio at a stable 69 percent.
Non-interest income grew by 15 percent, boosted by higher fee-based income and stronger contributions from the bank’s insurance business.
Asset quality continued to improve, with the bank’s non-performing loan ratio declining to 1.75 percent from the previous year. NPL coverage remained solid at 140 percent, reflecting BDO’s conservative credit and provisioning strategies.
The bank’s capital base remained healthy, with a capital adequacy ratio of 15.4 percent. Shareholders’ equity strengthened by 12 percent on the back of profitable operations, lifting the bank’s book value per share to P113.04.
In line with its sustainability thrust, BDO is set to issue its fourth ASEAN Sustainability Bonds today, with a minimum aggregate issue size of P5 billion. The offer period, originally scheduled from July 9 to 22, closed early on July 14 following strong demand from both retail and institutional investors.
The proceeds will be used to finance or refinance eligible green and social projects, further expanding the bank’s sustainable finance portfolio.
Despite headwinds from global geopolitical tensions and renewed US tariff measures, BDO said the Philippine economy is expected to remain resilient, anchored by strong domestic demand and consumer spending.
The bank added that it is well-positioned to navigate emerging risks and seize growth opportunities, backed by its solid capital base and diversified business model.
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