BDO Unibank, Inc. (BDO) has announced its earnings for the first quarter of 2023, reporting a net income of ₱16.5 billion. The bank experienced broad-based growth across its core businesses, with the Return on Average Common Equity (ROCE) increasing to 14.45% from 11.09% in the same period last year.
The bank’s gross customer loans rose by 8% to ₱2.6 trillion, while total deposits expanded by 14% to ₱3.2 trillion. Despite the uncertain economic climate, BDO maintained a strong balance between loan growth and liquidity, with a liquid asset ratio of 35%.
Net interest income increased to ₱43.4 billion, and non-interest income grew to ₱18.9 billion, fueled by solid growth in various fee-based and treasury/FX businesses. The bank’s operating expenses rose by 17%, primarily due to volume-related costs, but revenue growth continued to outpace opex growth, resulting in pre-provision operating profit accelerating to P24.9 billion.
BDO’s Non-Performing Loan (NPL) ratio improved to 1.98% from 2.72% in 1Q22, with NPL coverage increasing from 120% to 170% YoY, as the bank maintained its conservative credit and provisioning policies.
BDO’s capital base strengthened to ₱475.9 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio at 14.8% and 13.7%, respectively, both well above regulatory minimum levels. Book value per share also rose by 10.5% YoY to ₱88.81.
Despite macroeconomic challenges, BDO believes it is well-positioned to weather short-term volatility and capitalize on long-term growth opportunities, given its sound balance sheet, established business franchise, and strong and diversified earnings streams.