BDO Unibank, Inc. kept benefiting from the local economy’s reopening as credit expansion managed to maintain growth in the first quarter of this year despite increased interest rates.
The Sy-led bank disclosed in a press statement earlier this week that its net income from January through March has since reached P16.5 billion, up 41% year over year.
Facade shot of bank office with BDO logo (IMAGE CREDIT: www.bdo.com.ph)
The same press release stated that in the same quarter, gross client loans rose 8% year over year to P2.6 trillion, while total deposits saw a 14% annual growth to P3.2 trillion.
On the strength of fee-based earnings, treasury and foreign currency market activities, and net interest and non-interest income, which totaled P43.4 billion and P18.9 billion respectively, achieved a double-digit increase in the first quarter.
However, due to the ongoing churn in activity, operating costs increased by 17% in the first quarter. BDO cited rising costs for gross receipts taxes, documentary stamp taxes, and credit card interchange fees.
The bank believes it is in a good position to weather short-term volatility and capitalize on long-term growth opportunities given its sound balance sheet, established business franchise, and diversified earnings streams, the disclosure stated.
“Macroeconomic challenges persist with still elevated inflation and interest rates,” it added.
Comparing the bank’s non-performing loan ratio to the first quarter of 2022, improved results were reported. It increased from the 2.72% reported a year earlier to 1.98% in the first quarter.