BDO UNIBANK, Inc.’s (BDO) net profit climbed by 33.33% year on year in 2022 amid strong results across all its core businesses.

BDO’s attributable net income stood at P57.054 billion in 2022, rising from P42.791 billion in the previous year, its financial statements filed with the local bourse on Monday showed.

It said in a statement that the profit increase was “driven by robust growth across its core businesses.”

“While macroeconomic challenges remain with persistent inflation and foreign exchange and interest rate volatility, BDO believes that its established business franchise and strong balance sheet will allow the bank to surmount near-term risks and capitalize on structural growth opportunities to attain long-term sustainable growth,” it said.

“We continue being alert to the challenges posed by supply constraints, higher inflation, tighter external liquidity, rates/FX (foreign exchange) volatility and geopolitical strains,” BDO added.

The bank’s 2022 income translated to a return on common equity of 13%, up from 10.5% the prior year, while return on average equity also improved to 12.9% in 2022 from 10.4% in 2021.

Its net interest income climbed 13.62% to P149.23 billion last year from P131.346 billion.

“Non-interest income climbed by 17% to P71.5 billion, bolstered by strong performance of our fee income, FX and fixed-income client-flow businesses,” BDO said.

It said its operations continued to grow as revenues were up 15% for the year.

Meanwhile, operating expenses rose by 8.64% to P131.208 billion from P119.875 billion as it opened new branches in rural areas and increased it spending on information technology for digital initiatives.

BDO said gross customer loans went up by 9% year on year “on broad-based growth due to the economic reopening.”

Asset quality was manageable despite an increase in loans, with its gross nonperforming loan (NPL) ratio at 1.95%, improving from 2.8% a year prior, and NPL coverage ratio at 167%.

Meanwhile, total deposits rose by 14% to P3.22 trillion from P2.82 trillion.

The bank’s capital was at P461.5 billion at end-2022.

Its capital adequacy ratio was at 14.5% in 2022, down slightly from 14.7% the year prior, while its common equity Tier 1 ratio was at 13.4%, slipping from 13.6%.

Total resources also grew to P4.074 trillion at end-2022 from P3.62 trillion a year prior.

The bank said it had a consolidated network of over 1,600 operating branches and more than 4,600 automated teller machines nationwide.

BDO shares went up by 10 centavos or 0.08% to end at P124.10 apiece on Monday. — AMCS