BDO UNIBANK, Inc. saw its net profit climb by 53.18% in the second quarter amid higher net interest earnings.

The Sy-led bank’s attributable net income stood at P18.72 billion in the second quarter, rising from the P12.72 billion booked in the same period last year, its financial statement filed with the local bourse on Monday showed.

This brought its attributable net profit for the first half to P35.25 billion, 11.21% higher year on year, amid growth across its core businesses.

This translated to a return on average common equity of 15.1%, up from 11.27% the year prior, while its return on average assets stood at 1.73% at end-June, also higher than the year-ago level of 1.3%.

BDO’s net interest income rose by 29.73% year on year to P46.10 billion in the second quarter.

Interest earnings from loans and receivables climbed by 47.13% to P48.12 billion. Interest income from trading and securities investments also rose by 48.6% to P8.742 billion. Meanwhile, interest expense jumped to P12.9 billion in the second quarter from P3.514 billion a year prior.

The bank’s net interest margin stood at 4.65% at end-June, up from 4.02% a year ago.

Other operating income also went up by 9.37% to P19.24 billion in the second quarter from P17.6 billion as the bank booked higher earnings from service charges, fees and commissions and a smaller net trading loss.

Meanwhile, total other operating expenses rose by 15.62% to P37.8 billion in the period from P32.69 billion.

The bank’s customer loans grew by 8% year on year to P2.7 trillion at end-June.

Despite the increase in loans, BDO’s nonperforming loan (NPL) ratio dropped to 1.95% at end-June from 1.98% at end-March, while NPL coverage “improved” to 174% “with prudent credit and provisioning policies,” it said.

On the funding side, deposits went up by 12% year on year to P3.3 trillion at end-June amid a 4% growth in demand deposits and 86% increase in time deposits.

BDO’s total resources stood at P4.16 trillion as of June, up by 9% year on year.

Total equity grew by 13% to P489.75 billion at end-June from the year-ago level.

The bank’s capital adequacy ratio stood at 14.97% as of June, up from 14.48% a year prior, while its common equity Tier 1 ratio was at 13.9%.

“With improving macroeconomic trends exemplified by decelerating inflation, sustained GDP (gross domestic product) growth and stable foreign exchange and interest rates, the bank remains poised to capitalize on emerging growth opportunities given its solid balance sheet, strong business franchise and diversified earnings streams,” BDO said in a statement.

BDO’s shares dropped by P1.90 or 1.29% to end at P145.10 each on Monday. — A.M.C. Sy