BDO 9M earnings edge up as loans grow 16 percent
BDO Unibank Inc. reported net income of P63.6 billion in the first nine months of 2026, slightly higher than the P63.1 billion recorded a year earlier, as loan growth and higher net interest income supported earnings despite a challenging economic environment.
In a Friday disclosure, the bank said its return on equity stood at 13.1 percent during the period. Gross customer loans increased 16 percent year-on-year to P4.1 trillion, outpacing the industry’s 11 percent growth. BDO said the expansion was driven by double-digit growth across all loan segments.
“The Bank continued its strong operational performance, supported by robust loan growth, double-digit pre-provision operating profit growth and further improvement in asset quality,” BDO said.
Net interest income rose 11 percent from a year earlier, while total deposits increased 11 percent. Current and savings account (CASA) deposits grew 5 percent.
Non-interest income rose 3 percent, while operating expense growth remained in the single digits as the bank managed costs.
Pre-provision operating profit increased 10 percent, supported by loan growth and disciplined cost management.
Asset quality continued to improve despite the expansion in lending. The nonperforming loan (NPL) ratio declined to 1.60 percent as of September from 1.77 percent a year earlier, while the NPL coverage ratio remained at 132 percent.
Shareholders’ equity increased 6 percent, with book value per share rising 6 percent to P123.60. The bank’s common equity Tier 1 (CET1) ratio stood at 12.6 percent.
“BDO remains poised to capitalize on opportunities that support its long-term growth objectives amid changing market conditions and a dynamic operating environment, backed by its diversified business model, solid financial position, and market-leading franchise,” the bank said.
BDO’s earnings report comes as the bank retained its position as the Philippines’ most valuable brand in 2026, with a brand value of $3.5 billion, as Philippine banking brands collectively grew 19 percent to $13.2 billion, outpacing the sector’s 5 percent growth across Southeast Asia, according to Brand Finance.
The brand valuation consultancy’s ASEAN 500 2026 report ranked BDO 16th among the region’s most valuable brands, followed by Bank of the Philippine Islands (BPI) at 19th after its brand value jumped 37 percent to $3.2 billion.
Alex Haigh, managing director of Brand Finance Asia Pacific, said the gains among Philippine banks were helping the country’s banking sector outperform its regional counterparts.
“The momentum extends beyond these leaders, with mid-sized banks such as AUB, Chinabank and RCBC all growing by more than 40%, helping Philippine banking brands increase their combined brand value by 19%, compared with 5% across ASEAN. As challengers grow at this pace, scale alone is no longer enough to protect a leading position,” Haigh added.