BDO Unibank, Inc., which operates the country’s largest bank network, reported a net income of P20.1 billion in the first quarter of the year, up a modest 2 percent from P19.7 billion a year earlier, as core businesses remained steady. 

The Sy Family-led bank said on Friday that the Return on Average Common Equity was 12.8 percent.

Growth was supported by strong lending and operating performance, with loans and pre-provision operating profit expanding at mid-teens levels. 

However, higher provisions limited earnings growth as the bank built reserves in response to evolving geopolitical risks.

Net interest income increased 11 percent, driven by a 16 percent rise in gross customer loans to P3.8 trillion, with double-digit growth across all segments. 

Deposits grew 15 percent, while Current Account/Savings Account deposits rose 7 percent.

Non-interest income went up 6 percent, while insurance income surged 27 percent.

Asset quality improved, with the non-performing loan (NPL) ratio easing to 1.68 percent from 1.77 percent a year ago. NPL coverage stood at 132 percent.

Shareholders’ equity rose 9 percent, lifting book value per share by 8 percent to P119.36. The bank’s Common Equity Tier 1 ratio was at 13.3 percent.

BDO said its market position and diversified business model support long-term growth as it navigates a dynamic operating environment.