Sy Family-led BDO Unibank Inc. booked a net income of P40.6 billion in the first half of the year, rising 3 percent from P39.4 billion a year earlier, powered by solid gains in its core businesses.

The bank said in a stock exchange report on Monday that continued investments in market expansion and IT upgrades slightly tempered profit growth. Return on Average Common Equity stood at 13.9 percent during the period.

Net interest income rose 7 percent as gross customer loans increased by 14 percent to P3.4 trillion, with broad-based growth across all market segments. Deposits breached P4.0 trillion, up 8 percent, with a CASA ratio of 69 percent.

Non-interest income grew 15 percent, driven by higher fee-based earnings and contributions from insurance operations.

Asset quality also improved, with the non-performing loan ratio down to 1.75 percent and NPL coverage at 140 percent. Shareholders’ equity grew 12 percent, while book value per share rose to P113.04. The bank’s capital adequacy ratio remained strong at 15.4 percent.

BDO is set to issue its fourth ASEAN Sustainability Bonds on Tuesday, with a minimum size of P5 billion. Originally set from 9 to 22 July, the offer closed early on 14 July amid strong investor demand. Proceeds will fund eligible projects in its sustainable portfolio.

Entering the second half of the year, BDO said it remains optimistic despite global headwinds, banking on the Philippines’ resilient, consumer-driven economy to sustain momentum through year-end.

“The Bank remains well-positioned to manage emerging risks and capitalize on opportunities given its robust capital base and diversified business franchise,” it said.