BDO earns ₱40.0 billion in 9M 2022
In the first nine months of 2022, BDO Unibank’s net income grew 10% to P40 billion on solid results across its core businesses. This translates into a ROACE (Return On Average Common equity) of 12%.
While this was lower than last year when it posted a 15%, there were two major reasons for the drop: higher funding costs due to increased interest rates and weaker loan growth which offset any positive impact from fee increases and insurance premium write-offs.
With CASA deposits remaining low at only 8%-10%, we expect these trends will continue in future periods as well meaning that unless something significant changes – like another lending crisis happening.
In Q2, the Bank continued its branch expansion in underserved markets while sustaining IT spending to support digital initiatives. Operating expenses rose by P98 billion as a result of these factors; however asset quality improved and NPL ratios went down further resulting in higher coverages for creditors (152%). Total capital increased ₱444 675 million with a Capital Adequacy Ratio of 14%, Common Equity Tier 1 at 13%.
The Bank has been expanding its presence across the country this year, and it’s doing so in a way that will help provide financial services to more Filipinos.
As of September 30th 2022 they had 1,608 branches nationwide – 64% (walking) while 362 are automated teller machines or ATMs located mostly around urban areas where most people live; these represent growth strategies for coming up with new ways savers can access their money when necessary without having an actual branch near them!
