BDO Unibank Inc. announced on August 1 that it was able to grow its net profit by 12 percent in the first half of the year, owing largely to the strong performance of its core businesses during the period.
The bank reported a net profit of P23.9 billion (roughly $431.17 million at current exchange rates) during the first six months of 2022. Its non-interest income expanded to P34.3 billion, which the bank attributed to strong expansion in fees and insurance premium.
“BDO’s established business franchise, healthy capital position and sustainable earnings performance reinforce the Bank’s resilience against prevailing macro headwinds and put it in a good position to capitalize on the country’s structural opportunities for long-term sustainable growth,” the bank said in a disclosure to the Philippine Stock Exchange.
Meanwhile, the lender said its customer loan portfolio went up by 9 percent, funded by an 11 percent rise in CASA (current account/savings account) deposits which now comprise 85 percent of total deposits.
Pre-provision operating profit (PPOP) was also up to P39.2 billion, which the bank said is reflective of the strength of core income sources amid a tempered rise in operating expenditures.
“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,” BDO said.
“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,” added the Philippines’s largest bank by asset.
BDO also reported that its asset quality sustained its improvement as non-performing loan (NPL) ratio went down further to 2.39 percent vs. 2.72 percent a quarter-ago and 3.12 percent a year-ago.