BDO Unibank, Inc. Reported a PHP 73.4 Billion Net Income in 2023

Highlights: Earnings growth driven by core businesses; ROCE recorded at 15.2%. Loans up 9%, ahead of system growth. Asset quality improving: NPL ratio lower at 1.85%, and NPL coverage up to  185%. Capital position remains robust; Book Value per Share up 12% to P96.75. Sustainability initiatives continued; P63.3 billion ASEAN Sustainability Bonds issued in January.   

BDO Unibank, Inc. (BDO) reported a net income of P73.4 billion in 2023, up from P57.1 billion in 2022, due to growth in its core businesses. This resulted in a Return on Common Equity (ROCE) of 15.2%, up from 13.0% the prior year.

Net Interest Income increased to P186.4 billion, while Gross Customer Loans increased by 9% to P2.85 trillion, reflecting growth across all market sectors. Total deposits rose by 11% to P3.57 trillion, with the CASA ratio at 72%.
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Non-interest income totaled P84.0 billion, boosted by fee-based and Treasury/FX businesses.

Pre-Provision Operating Profit increased by 27% to P113.6 billion, with continuing positive operating leverage. Revenues grew slightly faster than operating expenses, owing primarily to volume-related charges, continuous network development, and IT investments.

Asset quality continues to improve, with the Non-Performing Loan (NPL) ratio falling to 1.85% and NPL coverage rising to 185% thanks to the bank's cautious provisioning stance.
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Common equity rose to P509.7 billion, with a Capital Adequacy Ratio (CAR) of 14.9% and a Common Equity Tier 1 (CET1) Ratio of 13.8%, far beyond regulatory minimums. Book value per share rose 12% year on year to P96.75.

BDO's environmental endeavors continued, with the bank successfully issuing its second ASEAN environmental Bonds in January. BDO raised a record ~63.3 billion to fund qualifying projects, supporting the country's sustainable development. This included financing 59 large-scale renewable energy projects and extending enterprise-wide initiatives to promote beneficial environmental and social consequences.

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.

BDO is a full-service universal bank which provides a wide range of corporate and retail services such as loan and deposit products, treasury, trust banking, investment banking, private banking, rural banking and microfinance, cash management, leasing and finance, remittance, life insurance, property & casualty insurance brokerage, cash cards, credit cards, and online and non-online stock brokerage services.

BDO has the country's largest distribution network, with over 1,700 consolidated operating branches and more than 4,800 ATMs nationwide. It also has 16 international offices (including full-service branches in Hong Kong and Singapore) in Asia, Europe, North America and the Middle East.

The Bank also offers digital banking solutions to make banking easier, faster, and more secure for its clients.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of December 31, 2023.