BDO Unibank reported a net income of ₱40.7 billion in the first half of 2026, driven by sustained growth across its core businesses.
The country’s largest lender posted a 15% increase in gross customer loans, alongside double-digit deposit growth and improving asset quality, reflecting continued demand for financing despite a cautious economic environment.
The results also reflected the bank’s continued focus on expanding its core banking business while maintaining a prudent approach to risk management.
Strong lending and deposit growth boost earnings
The bank recorded an 11% year-on-year increase in net interest income as gross customer loans grew 15% to ₱3.9 trillion. Growth was supported by double-digit lending across corporate, commercial, and consumer banking segments.
Meanwhile, total deposits climbed 13%, with current and savings account (CASA) deposits increasing 4%. Non-interest income also improved by 4%, led by a 14% increase in insurance operations.
BDO kept operating expenses under control, allowing pre-provision operating profit to grow by 12%, further strengthening its financial performance during the period.
Asset quality continues to improve
Beyond higher earnings, BDO also reported stronger asset quality. The bank’s non-performing loan (NPL) ratio improved to 1.64%, down from 1.75% in the same period last year, while NPL coverage remained healthy at 132%.
To strengthen its buffers against evolving economic risks, the bank increased credit provisions, resulting in a credit cost of 67 basis points.
Shareholders’ equity rose 8%, with book value per share reaching ₱121.78. The bank’s Common Equity Tier 1 (CET1) ratio stood at 13.1%, reflecting its solid capital position.
Strong fundamentals support future growth
Backed by healthy loan expansion, a growing deposit base, and improving asset quality, BDO appears well-positioned to sustain growth while navigating an evolving economic environment. Its solid capital position also provides flexibility to support future lending and business expansion.
