BDO UNIBANK, Inc. saw its net profit rise by 28.67% year on year in 2023 amid continued growth across its core businesses, it said on Monday,

The Sy-led bank’s attributable net income stood at P73.41 billion last year, up from P57.05 billion in 2022, its financial statement disclosed to the stock exchange showed.

This translated to a return on common equity of 15.2% and a return on assets of 1.7%, up from 15.2% and 1.5%, respectively.

“BDO’s strong business franchise and market leadership, healthy capital position, and robust financial performance bolster the bank’s foundation for long-term sustainable growth and profitability, despite continuing challenges in the macroeconomic environment,” it said in a statement.

Net interest income climbed by 24.9% to P186.39 billion last year from P149.23 billion previously, driven by the 9% expansion in its customer loans, BDO said, noting it saw growth across all market segments.

Broken down, interest income rose to P240.196 billion from P169.071 billion, while interest expense grew to P53.809 billion from P19.839 billion.

The bank’s net interest margin stood at 4.6% in 2023, up from 4.1% the previous year.

Other operating income climbed by 17.45% to P84.02 billion in 2023 from P71.53 billion a year prior, supported by earnings from its fee-based and treasury or foreign exchange businesses.

The bank’s pre-provision operating profit rose by 27% to P113.6 billion, it said.

“Revenues expanded at a slightly faster pace than operating expenses growth mostly from volume-related costs, continued network expansion and IT (information technology) investments,” BDO said.

Operating expenses rose by 19.53% year on year to P156.83 billion in 2023 from P131.21 billion previously.

BDO’s gross nonperforming loan (NPL) ratio improved to 1.85% at end-2023 from 1.95% previously. Its NPL coverage ratio was at 185%.

Meanwhile, total deposits with the bank rose by 10.76% to P3.57 trillion last year from P3.22 trillion in 2022, with its current and savings account or CASA ratio at 72%.

BDO’s assets grew by 9.89% to P4.48 trillion at end-2023 from P4.07 trillion in 2022.

Total equity was at P518.55 billion, up by 12.37% from P461.46 billon.

The bank’s capital adequacy ratio was at 14.9%, up from 14.5% a year prior, while its common equity tier 1 ratio stood at 13.8%, rising from 13.4% previously.

The Sy-led lender had 1,720 local branches and two foreign branches as of Dec. 31, 2023, with 2,863 on-site automated teller machines (ATMs), 1,939 off-site ATMs, and one mobile ATM.

BDO’s shares dropped by P4.10 or 2.67% to close at P149.50 each on Monday. — AMCS