BDO Unibank, Inc. (BDO) delivered impressive results in the first quarter of 2024, posting a net income of PHP18.5 billion.
This represents a 12 per cent increase compared to the same period last year, and easily translates to an annualized Return on Common Equity (ROCE) of 14.3 per cent.
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The bank’s strong performance may be attributed to the following:
Solid growth across core businesses:
The bank’s performance was driven by the sustained strength of its core businesses.
BDO’s “Net Interest Income” and “Gross Customer Loans” grew by 13 per cent, indicating continued lending activity and healthy customer deposits. Deposits also saw a 13 per cent increase, with a significant contribution coming from low-cost Current Account/Savings Accounts (CASA).
Increased non-interest income and stable asset quality:
BDO also saw an 11 per cent rise in “Non-Interest Income,” fueled by growth in fee-based services, treasury and foreign exchange businesses, and a recovery in life insurance premiums. Additionally, asset quality remained stable thanks to the bank’s conservative credit and provisioning policies.
The “Non-Performing Loan” (NPL) ratio also held steady at 1.88 per cent, while NPL coverage stayed strong at 181 per cent.
Strong financial position and commitment to growth:
BDO’s financial position remains healthy, with common equity rising by 12 per cent and book value per share improving by 12 per cent year-on-year to PHP99.23. These results reflect the bank’s commitment to long-term growth and profitability, as outlined in its mission to be “the preferred bank in every market it serves.”
They continue to pursue market leadership backed by a robust balance sheet and diversified business operations.
Positive outlook for 2024:
BDO Unibank’s strong first-quarter performance positions the bank well for continued success in 2024. Their focus on core business growth, diversified revenue streams, and responsible lending practices will likely contribute to a positive outlook for the year.
