BDO net balloons to P57B

A view of BDO Unibank Inc.'s main office building in Makati City. File Photo

By The Manila Times

February 28, 2023 

THE country's largest bank saw its net income surge to P57.1 billion last year, up 34.7 percent from P42.8 billion in 2021, following robust growth across its core businesses.

The earnings were "broad-based and diversified," the Sy-led bank said in a statement, adding that it remained optimistic about its growth prospects despite current headwinds.

"We continue being alert to the challenges posed by supply constraints, higher inflation, tighter external liquidity, rates/FX (foreign exchange) volatility and geopolitical strains," it said.

"While macroeconomic challenges remain... BDO believes that its established business franchise and strong balance sheet will allow the bank to surmount near-term risks and capitalize on structural growth opportunities to attain long-term sustainable growth," it also said.

Return on equity improved to 13 percent for the year — 15.3 percent in the fourth quarter alone — from 10.5 percent in 2021 and 12.8 percent in 2019 before the start of the Covid-19 pandemic.

Gross customer loans were said to have gone up by 9 percent year on year, which BDO described as "broad-based" and due to the economy's reopening. Deposits climbed by 14 percent and net interest income grew by 14 percent to P149.2 billion.

Non-interest income, meanwhile, rose by 17 percent to P71.5 billion on the back of strong fee income, foreign exchange and fixed-income client-flow businesses.

Asset quality also improved, the bank said, with the non-performing loan (NPL) ratio declining to 1.95 percent and NPL coverage strengthening to 167 percent.

Total capital expanded to P461.5 billion with the capital adequacy and common equity tier 1 ratios both above regulatory minimum levels at 14.5 percent and 13.4 percent, respectively. Book value per share rose by 9 percent to P86.20 year on year.

Also on Monday, BDO announced on Monday that its board of directors had approved an increase in the bank's quarterly cash dividends on common shares to P0.75 per beginning this year and payable on March 31, 2023.

"This will be the new dividend policy of BDO going forward," the bank said in a separate statement.

"This higher dividend payout compares favorably with the P0.30 per share quarterly dividend in the past, as the bank recognizes the importance of providing a stable and sustainable dividend stream consistent with its commitment to shareholders, and its financial performance," it added.

The bank's shares rose by 10 centavos, or 0.08 percent, on Monday to P124.10 apiece amid a 1.29-percent plunge for the benchmark Philippine Stock Exchange index.