BDO Unibank, Inc. (BDO), has announced robust financial results for the first quarter of 2024, with earnings reaching PHP18.5 billion. This represents a notable 12% increase compared to the same period last year, underpinned by the sustained performance of its core operations.
The bank achieved an annualized Return on Common Equity (ROCE) of 14.3% for the first quarter of 2024, reflecting its efficient utilization of resources and effective management strategies. Key drivers of the bank’s strong performance include a 13% increase in Net Interest Income, fueled by a corresponding expansion of 13% in Gross Customer Loans. Additionally, Deposits grew by 13%, buoyed by the robust growth of low-cost Current Account/Savings Account (CASA) deposits.
Non-Interest Income also saw significant growth, rising by 11% on the back of steady expansion in fee-based and treasury/FX businesses, as well as a recovery in life insurance premiums.
Maintaining its commitment to prudent risk management, BDO sustained stable asset quality during the quarter. The bank’s conservative credit and provisioning policies contributed to a Non-Performing Loan (NPL) ratio of 1.88%, with NPL coverage reaching 181%.
On the otherhand, common equity increased by 12%, reflecting the bank’s sustained profitability and operational efficiency. Book value per share improved by 12% year-on-year, reaching PHP99.23.
BDO’s strategic vision, encapsulated in its mission to “be the preferred bank in every market it serves,” underscores its dedication to long-term growth and profitability. The bank’s approach emphasizes maintaining market leadership through a strong balance sheet and a diversified business franchise.