BOO Unibank Inc., or BDO, saw a higher net income of P73.4 billion last year from P57.1billion in 2022 due to higher loan demand and transaction fees.

Net interest income grew to P186.4 billion, reflecting a nine percent increase to P2.85 trillion in gross loans to all customer segments, BDO’s disclosure to the Philippine Stock Exchange revealed Monday.

Non-performing loan, or NPL, ratio improved to 1.85 percent, while bad debts coverage expanded on a “conservative” approach at 185 percent, BDO said.

Total deposits grew by 11 percent to P3.57 trillion, with a 72-percent share of low-cost current and savings accounts.

Fee collection rises

Non-interest income reached P84 billion as the bank continued to process fees for foreign exchange and other services.

“Revenues expanded at a slightly faster pace than operating expenses growth mostly from volume-related costs, continued network expansion and IT (information technology) investments,” BDO said.

The bank said operating profit excluding NPL provisions rose by 27 percent to P113.6 billion.

Return on common equity stood at 15.2 percent, higher than 13 percent year-on-year.

Meanwhile, book value per share increased by 12 percent to P96.75.

BDO’s capital remained above the regulator’s minimum requirement, with a capital adequacy ratio of 14.9 percent and common equity tier 1 ratio of 13.8 percent.