BDO posts P40.7-B first-half net income

BDO Unibank, Inc. posted a net income of ₱40.7 billion in the first half of 2026, slightly higher than the ₱40.6 billion recorded in the same period last year, as strong lending activity and improved asset quality offset higher provisions for potential risks.

The bank reported a return on equity of 12.7 percent, reflecting the sustained strength of its core banking businesses despite an evolving economic environment.

Net interest income grew 11 percent year on year, driven by a 15-percent increase in gross customer loans to ₱3.9 trillion, supported by double-digit growth across all lending segments.

Total deposits also expanded by 13 percent, while current and savings account (CASA) deposits increased by 4 percent.

Non-interest income rose 4 percent, led by a 14-percent growth in insurance operations. Meanwhile, operating expenses increased at a single-digit pace, allowing pre-provision operating profit to climb 12 percent.

BDO also reported continued improvement in asset quality, with its nonperforming loan (NPL) ratio declining to 1.64 percent from 1.75 percent a year earlier. Its NPL coverage stood at 132 percent.

The bank said credit cost increased to 67 basis points as management adopted a more prudent approach by setting aside higher provisions against potential risks.

Shareholders’ equity grew 8 percent during the period, lifting book value per share to ₱121.78, while its common equity Tier 1 (CET1) ratio stood at 13.1 percent.

BDO said its strong balance sheet, solid business fundamentals and market leadership position place the bank in a favorable position to manage uncertainties while pursuing growth opportunities.