BDO UNIBANK, Inc. booked a net profit of P40.7 billion in the first semester as strong core business growth offset higher credit costs.
This was higher than the P40.6 billion posted in the same period last year, resulting in a return on equity of 12.7% as of end-June 2026.
Net interest income rose by 11% year on year, driven by a 15% expansion in gross customer loans to P3.9 trillion as all segments increased by double digits.
Non-interest income likewise went up by 4%, driven mainly by a 14% growth in the bank’s insurance business.
BDO said operating expenses grew by just single digits, resulting in a 12% increase in
pre-provision operating profit.
The bank’s asset quality continued to improve as its nonperforming loan (NPL) ratio declined to 1.64% as of the first six months from 1.75% a year ago.
NPL coverage stood at 132%, while credit costs increased to 67 basis points.
On the funding side, total deposits increased by 13% year on year, with current and savings accounts expanding by 4%.
Total equity went up by 8%, with the bank booking a common equity Tier 1 ratio of 13.1%. — Aaron Michael C. Sy
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