BDO sees net income growth, expenses shoot up in Q1

MANILA, Philippines — BDO Unibank, Inc. continued to reap the benefits of reopened domestic economy as credit expansion managed to sustain its growth amid higher interest rates in the first quarter. 

In a disclosure sent to the Philippine Stock Exchange on Tuesday, the Sy-led bank posted a net income of P16.5 billion, which grew 41% year-on-year from January to March.

Gross customer loans increased 8% on-year to P2.6 trillion in the same period, with total deposits eking 14% annual growth to P3.2 trillion.

Net interest and non-interest income posted double-digit growth in the first quarter, at P43.4 billion and P18.9 billion on the back of fee-based earnings and treasury and foreign exchange market businesses.

However, operating expenses grew 17% in the first quarter as activity continued to churn. BDO noted costs from credit card interchange fees, documentary stamp taxes, and gross receipts taxes all increased.

“While macroeconomic challenges persist with still elevated inflation and interest rates, 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 read. 

The bank’s non-performing loan ratio posted better figures compared to the first quarter of 2022. It improved to 1.98% in the first quarter from the 2.72% posted a year ago. 

Shares in BDO closed trading 0.31% down on Tuesday. — Ramon Royandoyan