NET INCOME at BDO Unibank, Inc. rose 54% in the first half to P20.2 billion from a year earlier on the back of its strong recurring income from core units and higher fee income, the lender said in a stock filing on Friday.

The bank also traced higher earnings to normalized trading and foreign exchange gains. It did not provide second quarter financial figures.

BDO shares fell by 2.4% or P3.70 to P148.20 each at the close of trading.

The lender’s net interest income rose by 24% to P56.9 billion as net interest margins increased to 3.99% from 3.5% a year earlier.

BDO said consumer loans rose by 7% to P2 trillion.

Meanwhile, its gross nonperforming loan ratio stayed at 1.2% while its bad loan cover was at 163.2%.

Deposits increased by 3% to P2.4 trillion as clients shifted to higher-yielding fixed income investments, primarily bank-issued bonds.

Non-interest income went up by 29% to P29.5 billion as fee-based income and insurance premiums posted double-digit growth.

Provisions reached P3 billion as BDO maintained its conservative credit and provisioning policies. — Beatrice M. Laforga

RELATED ARTICLESMORE FROM AUTHOR