BDO H1 profit reached record-high P 40.7B

MANILA, Philippines — BDO Unibank Inc. posted a record-high P40.7-billion net income in the first half of 2026 as sustained growth in core banking businesses offset higher provisions set aside to cushion potential risks.

The Sy family-led bank said on Monday that it generated a 12.7-percent return on equity, reflecting the resilience of its core businesses.

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The bottom line was slightly higher than the P40.6-billion earnings in the same period a year ago.

The bank maintained strong operating momentum, posting mid-teens loan growth, double-digit expansion in preprovision operating profit and improved asset quality.

“Backed by strong business fundamentals, a healthy balance sheet and its market leadership position, BDO remains well-positioned to navigate prevailing uncertainties and capture opportunities in an evolving business environment,” the bank said.

Net interest income rose 11 percent as gross customer loans expanded 15 percent to P3.9 trillion, supported by double-digit growth across all customer segments. The loan portfolio outpaced industry growth.

On the funding side, total deposits increased 13 percent, with low-cost deposits growing by 4 percent.

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Meanwhile, noninterest income climbed 4 percent, driven mainly by a 14-percent increase in insurance operations.

The bank also kept operating expense growth at a single-digit pace, allowing pre-provision operating profit to increase by 12 percent.

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READ: Moody’s affirms BPI, BDO investment-grade ratings

BDO said asset quality continued to improve, with its nonperforming loan (NPL) ratio easing to 1.64 percent from 1.75 percent a year earlier. Its NPL coverage ratio stood at 132 percent.

The bank said credit cost increased to 67 basis points, reflecting management’s proactive approach to addressing potential risks through higher provisions.

Shareholders’ equity grew 8 percent, lifting book value per share to P121.78, while the common equity tier 1 ratio stood at 13.1 percent, indicating ample capital to support future growth.

Separately, the BDO board noted the retirement of Jose Alfredo Guinto Pascual, senior vice president, effective Aug. 1. INQ