Capital continues to strengthen with 13% increase in Book Value
In the third quarter of 2023, BDO Unibank, Inc. (BDO) recorded a net income of ₱53.9 billion, up from P40.0 billion in the third quarter of 2022. This increase was driven by broad-based development across its key operations. Due to this, the Return on Common Equity (ROCE) increased to 15.1% from 12.4% in the same time last year.
Customer Loans climbed 7.5% year over year to P2.7 trillion and Deposits increased 12% to ₱3.4 trillion, bringing Net Interest Income to an increase of P176.4 billion.
With help from a number of fee-based and treasury/FX businesses, non-interest income reached a final value of 57.9 billion.
With sales growth still outpacing expense growth, pre-provision operating profit reached an amount of ₱ 80.6 billion.
Non-Performing Loan (NPL) ratio remained stable at 1.99% despite the higher interest rate environment, while NPL coverage improved to 176%. The Bank continues to set aside provisions in line with its conservative credit and provisioning policies.
Common Equity increased to ₱494.3 billion given continued profitable operations. Book Value Per Share (BVPS) increased 13% to ₱93.83. Capital Adequacy Ratio and Common Equity Tier 1 (CET1) Ratio strengthened to 15.6% and 14.5%, respectively, with ample capital buffers vs. regulatory minimum levels.
While macroeconomic challenges persist, the Bank remains cautiously optimistic and is well-positioned to capitalize on opportunities given its strong balance sheet and diversified business franchise.