BDO earnings down 1.5% in the first half

BDO Unibank, the country's largest lender, saw first-half net profit fall 1.5% to 13.1 billion euros due to accounting adjustments by its insurance group and expenses related to the expansion of its rural bank. Excluding the impact of the accounting adjustment at BDO Life and One Network Bank's expansion expenses, BDO said its first-half net profit would have increased 13% year-over-year account double-digit growth in profits from core lending In a statement on the Philippine Stock Exchange, BDO said net interest income rose 19 percent year-over-year to nearly $ 46 billion in the first quarter. half-year, its loan portfolio increased by 20% to 1.9 trillion net profit margin improved to 3.5% from 3.43% year-on-year. last due to an increase in low-cost funds associated with an upward revaluation of interest rates due to rising interest rates.

8 billion in the first half, down 2% year-over-year, 23% growth in insurance premiums to 5.6 billion and 7% growth in commissions and other income to 17.2 billion by mark-to-market losses in the BDO Life portfolio.

Service fees remained high, but were mitigated by weak underwriting and syndication activities on the financial markets. In terms of financing, total deposits increased by 17% to 3,300 billion pesos, supported by the 14% increase in low-cost deposits which accounted for more than BDO's operating expenses. increased by 12% in the first half, as the bank opened 45 new branches and paid higher taxes on document stamps (DST) as part of the recently introduced tax reform. Excluding the impact of the increase in the TSD, BDO estimates that operating expenses would have increased by only 10%.

Meanwhile, the bank set aside £ 3.5 billion for loan losses, while the ratio of non-performing loans dropped to 1.2 percent. total loans increased from 1.3% the year before.

For each P1 value of bad debts, the bank has now set aside 1.5 million provisions against 1.37 the previous year.

BDO's total capital was 303 billion pesos, with a capital adequacy ratio and a core capital ratio 1 of 14% and 12.4% respectively.

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