Increasing fees and insurance premiums boosted BDO’s business

BDO Unibank Inc. announced on Aug. 1 that it managed to increase its net income by 12 percent in the first half of the year, mainly due to the strong performance of its core business during this period.

The bank reported a net profit of 23.9 billion pesos (approximately $431.17 million at current exchange rates) in the first six months of 2022. Its non-interest income increased to 34.3 billion pesos, which the bank attributed to a significant increase in fees and insurance premiums.

“BDO’s established business franchise, healthy capital position and robust earnings performance strengthen the bank’s resilience to prevailing macroeconomic headwinds and well position it to capitalize on the country’s structural capacity for long-term sustainable growth,” the bank said in a statement. Philippine Stock Exchange.

Meanwhile, the lender said its customer loan portfolio increased by 9 percent, funded by an 11 percent increase in CASA (checking account/savings account) deposits, which currently account for 85 percent of total deposits.

Preliminary operating income (PPOP) also came in at 39.2 billion pesos, which the bank said reflects the strength of key revenue streams amid modest growth in operating costs.

“The Bank continues to implement new digital capabilities and self-service technologies at branches to make banking services more accessible, easy to use and efficient,” BDO said in a statement.

“These branch innovations include paperless direct processing capability, covering 80 percent of branch transactions, and cardless ATM transactions using biometrics (fingerprint or facial recognition) and QR codes,” added the largest bank in the Philippines. .

BDO also reported that its asset quality continued to improve as its non-performing loan ratio (NPL) fell to 2.39% compared to 2019. 2.72% a quarter ago and 3.12% a year ago.