BDO Unibank, Inc. (BDO) reported a net income of ₱53.9 billion for the 9M 2023 vs. P40.0 billion in 9M 2022, backed by broad-based growth across its core businesses. This resulted in a Return on Common Equity (ROCE) of 15.1% compared to 12.4% in the same period last year.
Net Interest Income increased to ₱137.4 billion with Customer Loans growing 7.5% year-on-year to ₱2.7 trillion and Deposits expanding 12% to ₱3.4 trillion.
Non-Interest Income settled at ₱57.9 billion, supported by various fee-based and treasury/FX businesses.
Pre-Provision Operating Profit amounted to ₱80.6 billion, with revenue growth continuing to outpace cost growth.
Non-Performing Loan (NPL) ratio remained stable at 1.99% despite the higher interest rate environment, while NPL coverage improved to 176%. The Bank continues to set aside provisions in line with its conservative credit and provisioning policies.
Common Equity increased to ₱494.3 billion given continued profitable operations. Book Value Per Share (BVPS) increased 13% to ₱93.83. Capital Adequacy Ratio and Common Equity Tier 1 (CET1) Ratio strengthened to 15.6% and 14.5%, respectively, with ample capital buffers vs. regulatory minimum levels.
While macroeconomic challenges persist, the Bank remains cautiously optimistic and is well-positioned to capitalize on opportunities given its strong balance sheet and diversified business franchise.