BDO net income surges fivefold in H1 2021

BDO Unibank posted a net income of P21.4 billion in the first half of 2021, around five times the P4.3 billion it earned in the same period in 2020.

The Sy family-led bank attributed the jump to “a strong sustainable earnings stream and normalized provisions.”

BDO said on Monday, August 2, that provisions for bad loans amounted to only P6.8 billion from January to June 2021, compared to P22.4 billion in the first half of 2020.

Its gross non-performing loan ratio stood at 3.1%, “still well below the bank’s worst-case expectations” of 4% to 5%, while NPL cover “remained more than adequate at 100%.”

Customer loans stayed flat at P2.3 trillion, while total deposits grew to P2.7 trillion from P2.6 trillion a year ago.

Net interest income reached P64.4 billion, while non-interest income rose to P29.7 billion, driven by fee-based income and insurance premiums.

“BDO’s solid balance sheet, healthy capital position, and sustained earnings performance put the bank in a good position to leverage on the country’s economic recovery,” it said.

BDO also noted that its operating expenses increased by 4% to P60.9 billion, mainly due to the 29% jump in expenses related to its life insurance business.

“Excluding the impact of the life insurance business, operating expenses would have increased by only 1%,” the bank said.

BDO is the Philippines’ largest bank in terms of total assets, loans, deposits, and trust funds. – Rappler.com