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BDO Unibank Inc. (BDO), a leading financial powerhouse in the Philippines, has astounded the market with its exceptional financial performance during the first half of 2023. The bank witnessed an impressive surge in net earnings, reaching an extraordinary P35.2 billion, marking a remarkable 47 percent increase compared to the same period last year when it earned P23.9 billion.
Revealing this outstanding achievement to the Philippine Stock Exchange, BDO proudly announced a remarkable 37 percent rise in gross revenues, soaring to an impressive P151.1 billion. This substantial increase showcases the bank’s remarkable progress from the P110.6 billion recorded in the first semester of 2022.
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BDO attributes this phenomenal growth to an array of improvements across its core businesses, which has led to a robust return on common equity of 15.1 percent. This notable surge is a testament to BDO’s dedication and expertise, surpassing the 11.3 percent ROCE achieved during the corresponding period last year. With such stellar performance, BDO continues to solidify its position as a dominant force in the financial landscape of the Philippines.
At the core of this remarkable achievement was the surge in net interest income, soaring to a substantial P89.5 billion. This impressive figure was made possible by an eight percent year-on-year expansion in gross customer loans, amounting to a staggering P2.7 trillion. Furthermore, deposit liabilities experienced remarkable growth, rising by an impressive 12 percent to reach P3.3 trillion.
In addition to the strong net interest income, the bank also witnessed a noteworthy 11 percent increase in non-interest income, totaling an impressive P38.2 billion. This growth was primarily attributed to significant advancements in various fee-based services, treasury operations, and foreign exchange (FX) businesses.
The bank’s exceptional financial management prowess is evident as the pre-provision operating profit settled at a robust P52.4 billion. This achievement showcases the bank’s efficiency in managing its financial operations, with revenues consistently outpacing operating expenses.
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BDO is celebrating a wave of positive developments, signaling robust growth in various areas. One notable improvement lies in the asset quality, as the non-performing loan (NPL) ratio experienced a slight dip to 1.95 percent from 1.98 percent on a quarter-on-quarter basis. This positive shift was further fortified by a commendable increase in NPL coverage, which now stands at an impressive 174 percent. The bank’s prudence in credit and provisioning policies has undoubtedly played a significant role in these encouraging results.
Another reason to rejoice is the remarkable increase in the shareholders’ equity, soaring to an impressive P487.5 billion, which serves as a testament to the fruitful outcomes of BDO’s profitable operations. Moreover, the capital adequacy ratio and common equity tier 1 (CET1) ratio both witnessed significant strengthening, comfortably surpassing regulatory minimum levels, with percentages reaching 15 percent and 13.9 percent, respectively.
In keeping with their commitment to shareholder value, BDO achieved a substantial 13 percent surge in book value per share, amounting to an attractive P91.42. This achievement reflects the bank’s dedication to ensuring the utmost benefits for its valued shareholders.
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The bank’s optimism for the future remains unwavering, as it highlights a promising array of macro-economic trends. Among these positive indicators are decelerating inflation, sustained GDP growth, and stable foreign exchange and interest rates. These factors position BDO uniquely to seize emerging growth opportunities, taking full advantage of its solid balance sheet, robust business franchise, and diverse earnings streams.
The exceptional financial performance exhibited by BDO in the first half of 2023 solidifies its standing as a dominant force in the Philippine banking sector. This performance serves as a testament to the bank’s resilience and adaptability in navigating a constantly evolving economic landscape. With an unwavering commitment to delivering value to stakeholders and a strategic approach to growth, BDO is confidently positioned to sustain its remarkable success in the financial market.
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