The country’s largest lender BDO Unibank grew its first semester net profit by 13 percent year-on-year to P13.2 billion, buoyed by improvement in core businesses and a one-time gain from the consolidation of its insurance operations.
In a disclosure Monday, the banking arm of the Sy family-led SM group said it expanded its loan book by 21 percent year-on-year to end the semester at P1.4 trillion, outpacing even the industry’s loan growth.
Net interest income rose by 17 percent year-on-year to P31.7 billion as the uptick in loans was also accompanied by an expansion of its low-cost funding business.
Total deposits rose by 17 percent year-on-year to P1.8 trillion, driven by the 23 percent jump in low-cost deposits, which now comprise 69 percent of total deposits.
Fee-based service income rose by 18 percent to P10.6 billion from the previous year, fueled by the bank’s investment/wealth management, payments/electronic banking, capital markets and insurance businesses.
Trading and foreign exchange income normalized compared to last year’s extraordinary levels, contributing only P2.9 billion. Last year, this was at P5.37 billion.
Other income, inclusive of the one-time gain from the consolidation of the bank’s life insurance businesses, hit P8.6 billion.
BDO has taken full control of insurance holding firm Generali Pilipinas Holdings Company Inc. (GPHC), an erstwhile joint venture with Generali Group of Italy. GPHC has been renamed BDO Life Assurance Co. Inc. (BDO Life).