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Monday, February 27, 2023

BDO Reports Strong Financial Results with ₱57.1 Billion Net Income in 2022

BDO Unibank, Inc. (BDO), the largest bank in the Philippines, has reported strong financial results for the full year 2022, with its net income reaching Php 57.1 billion, up from Php 42.8 billion in 2021. The bank's earnings were broad-based and diversified across all its core businesses, resulting in a Return on Average Common Equity (ROCE) of 13.0% for the year and 15.3% for the fourth quarter.

BDO's gross customer loans grew by 9% year-on-year due to the economic re-opening, while total deposits rose by 14%. The bank's net interest income increased by 14% to Php 149.2 billion, and non-interest income climbed by 17% to Php 71.5 billion. The strong performance of BDO's fee income, foreign exchange, and fixed income client-flow businesses contributed to this growth.

The bank's asset quality also improved, with its Non-Performing Loan (NPL) ratio decreasing to 1.95% and its NPL coverage strengthening to 167%. BDO's balance sheet remains solid, with a comfortable capital position, as its total capital expanded to Php 461.5 billion, with a Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio both above regulatory minimum levels at 14.5% and 13.4%, respectively.

Despite the persistent challenges posed by supply constraints, higher inflation, tighter external liquidity, rates/FX volatility, and geopolitical strains, BDO remains confident that its established business franchise and strong balance sheet will allow the bank to overcome near-term risks and capitalize on structural growth opportunities to achieve long-term sustainable growth.

BDO's continued investment in digital initiatives and expansion of new branches in underserved/rural areas contributed to the bank's overall positive operating jaws, with revenues up 15% for the year and operating expenses up 9%. The bank's book value per share also rose by 9% to Php 86.20 year on year.

Overall, BDO's strong financial results for 2022 reflect the bank's resilience and ability to adapt to a challenging business environment. The bank's continued focus on diversification, innovation, and risk management will enable it to navigate the uncertainties ahead and deliver sustainable value to its stakeholders.

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