BDO nets P40.7-B in H1

Sy-led BDO Unibank Inc. posted a slight increase in its net income for the first half of the year as the bank saw higher interest and non-interest income during the period while credit costs rose.

Net income grew slightly to P40.7 billion from P40.6 billion, while net interest income climbed 11% as gross customer loans increased 15% to P3.9 trillion. Total deposits expanded by 13%, while current and savings account (CASA) grew 4%.

Non-interest income increased 4% on the back of a 14% rise in insurance operating. Pre-provision operating profit climbed 12%.

“The bank sustained strong operating momentum, delivering mid-teens loan growth, double-digit growth in pre-provision operating profit, and improved asset quality. Provisions were increased as a prudential measure against evolving risks,” it said in a regulatoryfiling.

The bank’s nonperforming loan (NPL) ratio improved to 1.64% from 1.75% a year ago, with NPL coverage at 132%. Credit cost increased to 67 basis points, in line with the company’s “practive approach” to potential risks.

“Backed by strong business funamentals, a healthy balance sheet, and its market leadership position, BDO remains well-positioned to navigate prevailing uncertainties and capture opportunities in an evolving business environment,” the bank said. —VAL, GMA News