BDO posts 12% profit growth from loans

BDO Unibank, Inc., the Philippines' largest lender, announced a significant 12% increase in net profit, reaching P60.6 billion for the first nine months of 2024. This robust growth was attributed to the continued strength of its core intermediation and fee-based service businesses.

In a recent disclosure to the Philippine Stock Exchange, BDO highlighted its Annualized Return on Common Equity (ROCE) at 15% during this period. Regina Capital Development Corporation Managing Director Luis Limlingan remarked that the bank's performance aligns with market expectations, noting a net income increase of approximately 11.78% year-on-year in the third quarter.

Chinabank Capital Corporation Managing Director Juan Paolo Colet emphasized the broader context of BDO's growth, stating, "BDO’s double-digit earnings growth reflects the overall strength of the country's universal banks, supported by continued economic expansion and favorable business fundamentals." He further predicted that BDO could finish the year with over P80 billion in net income.

The bank reported a 13% year-on-year increase in Gross Customer Loans, driven by broad-based growth across various market segments. Total deposits also rose by 10% year-on-year, maintaining a steady Current Account/Savings Account (CASA) deposit ratio of 69%.

BDO experienced a 16% year-on-year rise in Non-Interest Income, bolstered by significant growth in fees, service charges, treasury and forex gains, as well as income from insurance operations.

Asset quality showed improvement, with the Non-Performing Loan (NPL) ratio declining to 1.82% and NPL coverage increasing to 178%. Shareholders' equity strengthened by 13% year-on-year, with Book Value Per Share growing to P106.48.

With over 1,700 operating branches and more than 5,700 ATMs nationwide, BDO boasts the country's largest distribution network. The bank is also well-positioned to leverage emerging opportunities for long-term growth and profitability, supported by its solid business foundation and extensive reach. As of June 30, 2024, BDO ranked as the largest bank in the Philippines in terms of total assets, loans, deposits, and trust funds under management.