As core businesses continue to deliver broad-based growth, BDO Unibank, Inc. (BDO) registered a net income of ₱16.5 billion for the first quarter of 2023. The Return on Average Common Equity (ROCE) advanced to 14.45% from 11.09%.

The total deposits expanded 14% to ₱3.2 trillion, while the gross customer loans increased 8% to ₱2.6 trillion. Given the uncertainty, the Bank has maintained a healthy balance between loan growth and sufficient liquidity for unforeseen events, maintaining its liquidity ratio at 35%. Net interest income grew to ₱43.4 billion while non-interest income rose to ₱18.9 billion, bolstered by solid growth in the various fee-based as well as treasury/FX businesses. 

Operating expenses (Opex) went up by 17%, mainly from volume-related costs such as credit card interchange fees, Documentary Stamp Taxes and Gross Receipts Taxes, consistent with increased activity. The Bank also sustained its IT investments and branch expansion with 97 new branches opened since 1Q 2022.  Revenue growth continued to outpace opex growth, resulting in pre-provision operating profit accelerating to P24.9 billion. 

BDO’s Non-Performing Loan (NPL) ratio improved to 1.98% from 2.72% in the first quarter of 2022. While NPL coverage increased from 120% to 170% YoY, as the Bank maintained its conservative credit and provisioning policies.  

The capital base strengthened to ₱475.9 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio at 14.8% and 13.7%, respectively, both comfortably above regulatory minimum levels. Book value per share rose by 10.5% YoY to ₱88.81.

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 strong and diversified earnings streams.  

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