BDO profit hits record P73.4 billion in 2023

MANILA, Philippines — BDO Unibank Inc. grew its earnings by 28.5 percent to hit an all-time high of P73.41 billion in 2023, driven by strong growth across its core businesses.

In a statement, the country’s biggest bank said its net interest income increased by 24.9 percent to P186.39 billion amid higher loan growth across all market segments.

BDO’s loan portfolio expanded by nine percent to P2.85 trillion, while its deposit base booked an 11 percent increase to P3.57 trillion.

Likewise, the bank’s non-interest earnings went up by 17.4 percent to P84.02 billion in 2023, supported by fee-based as well as treasury and foreign exchange businesses.

The bank said its pre-provision operating profit jumped by 27 percent to P113.57 billion, with sustained positive operating leverage.

Revenue expanded at a slightly faster pace than operating expenses growth mostly from volume-related costs, continued network expansion and information technology investments.

BDO’s asset quality continued to improve, with non-performing loan (NPL) ratio declining to 1.85 percent and NPL coverage increasing to 185 percent amid its conservative provisioning policy.

Operating expenses increased by 19.5 percent to P156.83 billion in 2023.

According to BDO, its capital remains robust with a capital adequacy ratio of 14.9 percent and common equity tier 1 ratio of 13.8 percent, well ahead of minimum regulatory levels.

The bank’s strong business franchise and market leadership, healthy capital position and robust financial performance bolster the foundation for long-term sustainable growth and profitability, despite continuing challenges in the macroeconomic environment.

As it continues to ramp up its sustainability initiatives, BDO raised a record P63.3 billion last month via its second foray into the ASEAN sustainability bond market last January.

The proceeds of the fund raising activity would be used to fund eligible projects, further aiding the country’s sustainable development, including financing of 59 large-scale renewable energy projects, and expanding enterprise-wide efforts to foster positive environmental and social impacts.

BDO has the country’s largest distribution network, with over 1,700 consolidated operating branches and more than 4,800 ATMs nationwide. It also has 16 international offices in Asia, Europe, North America and the Middle East.