MANILA, Philippines — The net income of Sy-led BDO Unibank Inc. (BDO) went up by 12 percent to P23.9 billion in the first half from P21.4 billion in the same period last year on the back of strong results across the bank’s core businesses.
The country’s largest lender reported an eight percent rise in net interest income to P69.4 billion from an expansion in earnings assets and an improvement in funding cost.
Likewise, other income went up by 15 percent to P34.3 billion, led by the 26 percent jump in service charges and fees to P17.6 billion on continued growth from major business services, as well as the seven percent rise in trust fees to P2.3 billion, and seven percent increase in insurance premiums to P9.9 billion.
The bank’s foreign exchange gains soared by 131 percent to P3.3 billion as it benefitted from continuing customer flows and revaluation of certain derivatives.
The increase was enough to offset the trading loss of P975 million arising from mark-to-market losses on BDO Life’s equity portfolio and revaluation of certain derivatives.
Likewise, other income declined by eight percent to P2.2 billion in the first semester on lower gains from real and other properties acquired (ROPA) disposal.
BDO reported a six percent increase in operating expenses to P64.5 billion from P60.95 billion, as employee benefits rose by 10 percent due to salary increases, as well as the 12-percent rise in occupancy expenses.
Despite the improvement in the non-performing loan (NPL) ratio to 2.39 percent from 3.12 percent, the bank reported a 21-percent increase in the provision for impairment to P8.2 billion in end-June from P6.8 billion in end-June last year.
For the second quarter alone, BDO recorded an 11.1 percent increase in net income to P12.27 billion from P11.04 billion in the same quarter last year.
BDO’s net loans and other receivables inched up by three percent to P2.5 trillion, while total deposits went up by five percent to P3 trillion.
The bank’s total resources grew by 10 percent to P3.8 trillion from growth in customer loans and investment securities mainly funded by deposits.
The bank continues to roll out new digital capabilities and self-service technologies across branches to make banking services more accessible, easier to use and operationally efficient.
These branch innovations include paperless straight through processing capability, covering 80 percent of branch transactions, and card less automated teller machine (ATM) transactions using biometrics (fingerprint scan or facial recognition) and QR codes.
It is now also offering its mobile wallet, BDO Pay, to non-BDO account holders. BDO Pay does not require any initial deposit or maintaining balance, and currently allows fund transfers to other bank accounts without cost.
BDO has the country’s largest distribution network, with over 1,500 consolidated operating branches and more than 4,500 ATMs nationwide. It also has 16 international offices in Asia, Europe, North America and the Middle East.