BDO Unibank Inc. posted a record net income of P40.7 billion in the first half of 2026, slightly higher than the P40.6 billion earned a year earlier, as robust lending activity, higher operating income and improving asset quality offset higher loan-loss provisions.

In a disclosure on Monday, the country's largest bank said it sustained strong operating momentum during the first six months of the year, with its loan portfolio expanding 15 percent to P3.9 trillion, outpacing industry growth through broad-based expansion across all business segments.

Total deposits also increased 13 percent, while current and savings account (CASA) deposits grew 4 percent. Net interest income rose 11 percent year on year, supported by the larger loan portfolio. The bank's return on equity stood at 12.7 percent.

Non-interest income increased 4 percent, driven mainly by a 14 percent rise in insurance operations. Meanwhile, operating expense growth remained at a single-digit pace, allowing pre-provision operating profit to climb 12 percent amid disciplined cost management.

Asset quality continued to improve, with the bank's non-performing loan (NPL) ratio declining to 1.64 percent from 1.75 percent a year earlier, while NPL coverage stood at 132 percent. Credit cost, however, increased to 67 basis points as BDO raised provisions as a prudential measure against evolving risks.

Shareholders' equity rose 8 percent, lifting book value per share to P121.78, while the bank's Common Equity Tier 1 (CET1) ratio stood at 13.1 percent, underscoring its strong capital position.

BDO said its healthy balance sheet, resilient core businesses and market leadership position leave it well-positioned to navigate prevailing uncertainties and capitalize on opportunities in the evolving business environment.

Separately, the bank's board of directors noted the retirement of Jose Alfredo Guinto Pascual, senior vice president and head of the Risk Management Group's Risk Portfolio Management/Credit Risk/Credit Committee Management unit, effective 1 August 2026.

Earlier this month, the bank made InstaPay and PESONet online transfers free of charge as part of a broader industry push for financial inclusion.