BDO Unibank Bares ₱42.8B 2021 Income, ₱11.7B Q1 2022 Net Income
BDO Unibank, Inc. (BDO) delivered a 51% increase in net income to P42.8 billion for the full-year 2021, sustaining its growth momentum with a 13% year-on-year (YoY) increase in net income to P11.7 billion for the first quarter of 2022 on the back of its core businesses.
Photo Insert: BDO’s sustained earnings performance, robust business franchise, and solid capital base place the Bank in a good position for long-term sustainable growth.
BDO's loan portfolio rose by 7% to P2.4 trillion on strong demand from corporate borrowers, the recovery in the middle market, and the resilience of the consumer segment. Deposits went up to P2.8 trillion driven by the 11% YoY increase in Current Account/Savings Account (CASA) deposits, now comprising 86% of total deposits. This resulted in net interest income of P33.9 billion, 6% higher than a year ago.
Non-interest income increased by 9% to P16.7 billion, driven by fees and insurance premiums. Trading and forex gains were in line with normalized business levels. Operating expense (OPEX) growth was manageable at 3% YoY to P31.8 billion.
Asset quality continued to improve with NPL ratio down to 2.72% from 2.81% last year. The Bank maintained its conservative credit and provisioning policy with provisions at P3.7 billion compared to P2.9 billion a year ago, resulting in higher NPL coverage at 120.8%
The total capital base strengthened to ₱429.9 billion, with the Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio both increasing to 14.6% and 13.5%, respectively, comfortably above the regulatory minimum.
BDO’s Return on Common Equity (ROCE) for the 1Q 2022 increased to 11.09% from 10.56% in the same period last year. The Bank’s Book Value per common share rose to P96.47 as of end-March 2022 for a 7% year-on-year growth.
BDO’s sustained earnings performance, robust business franchise, and solid capital base place the Bank in a good position for long-term sustainable growth.
BDO Stockholders have also approved the declaration of stock dividends equivalent to 20% of the bank's outstanding capital stock, as well as an increase in its authorized capital stock (common shares) from 5,500,000,000 to 8,500,000,000 shares, and the amendment of its Articles of Incorporation to reflect the increase, still subject to regulatory approvals.
Lastly, the BDO Board of Directors has approved a P1.00 special cash dividend on the bank's common shares, the record date for which being set on May 6, 2022, and payment date on May 31, 2022.