BDO Unibank, Inc. saw it Net profit in the third quarter increased by 6.09% year-on-year due to the continued expansion of its core businesses.
BDO's attributable net income rose to P22.47 billion in the three months to September, up from P21.18 billion in the same period last year, its financial statements filed with the stock exchange on Monday showed.
This brought its nine-month net income to P63.09 billion, up 4.07% from P60.62 billion in the same period last year.
This translates to returns on average common equity and returns on average assets of 14.11% and 1.67% respectively, down from 15.04% and 1.75% in the same period last year, as net income grew at a slower pace than average common equity and average assets.
BDO's net interest income rose 10.81% to P51.88 billion in the third quarter from P46.82 billion in the same period last year.
This came as its interest income increased 9.73% to P75.98 billion from P69.24 billion, mainly driven by higher interest income from loans. Interest expense also increased by 7.49% to P24.1 billion from P22.42 billion.
Net interest margin declined to 4.29% at the end of September from 4.32% a year earlier, which it said was due to the Bangko Sentral ng Pilipinas (BSP) policy rate cut and competitive market pricing.
The bank's other operating income also rose 12.89% to P19.44 billion in the July-September period from P17.22 billion last year amid an increase in income from service charges, fees and commissions, trust fees and foreign exchange gains.
Meanwhile, its income from insurance operations declined 22.71% to P1.77 billion from P2.29 billion.
On the other hand, BDO's operating expenses increased by 14.09% to P41.22 billion from P36.13 billion due to higher costs related to compensation and benefits, taxes and licenses, and advertising, etc.
The bank's gross customer loans rose 14% to P3.5 trillion as of September amid growth in all market segments.
“Asset quality remained stable, with the non-performing loan (NPL) ratio at 1.77% and NPL coverage at 134%,” it said.
Deposits at the bank also rose 10% year on year to P4.11 trillion as of September as its demand deposits grew by 13% and its time deposits increased by 18%. Its current account, savings account or CASA ratio was 67%.
BDO's assets grew 10% year-on-year to P5.27 trillion as of September “with growth in investment securities funded by gross customer loans and deposits and coming from sustainability bond issuances.”
Total equity stood at P630 billion, up 10% year on year even amid its continued profitable operations.
BDO's capital adequacy ratio stood at 15.55%, down from 15.22% a year ago, as the growth in capital coming from its profits was more than the growth in its risk-weighted assets. Its common equity Tier 1 ratio also increased to 14.4% from 14.1%.
Its liquidity ratio stood at 31.85%, down from 34.34% last year as its loans grew rapidly.
“Despite global trade uncertainties from higher US tariffs and local political issues, the Philippines is expected to demonstrate continued resilience, supported by stable inflation and strong domestic consumption. Meanwhile, the bank's strong capital foundation and diversified business portfolio is well-positioned to address current risks and capitalize on emerging growth prospects,” BDO said in a statement.
Its shares closed at P131, down P4.90 or 3.61% on Monday. , AMC Sy
