BDO profits jump 33%, declares higher dividend

BOO Unibank, Inc. reported a 33 percent jump in profits to P57.1 billion last year from P42.8 billion in 2021, driven by robust growth across its core businesses.
In a disclosure to the Philippine Stock Exchange, the bank said this led to Return on Average Common Equity (ROCE) of 13.0 percent for the year improving to 15.3 percent for the fourth quarter, from 10.5 percent in 2021 and 12.8 percent in pre-covid pandemic 2019.
Gross customer loans went up by 9 percent year-on-year on broad-based growth due to the economic re-opening. Total deposits rose by 14 percent, with Net interest income growing by 14 percent to P149.2 billion.
Non-interest income climbed by 17 percent to P71.5 billion bolstered by strong performance of its fee income, foreign exchange and fixed income client-flow businesses.
Positive operating jaws continued with revenues up 15 percent for the year, versus operating expenses up 9 percent on back of new branches in underserved/rural areas and continued Information Technology spend for digital initiatives.
Asset quality improved further, with Non-Performing Loan (NPL) ratio dipping to 1.95 percent and NPL coverage strengthening to 167 percent.
Total capital expanded to P461.5 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) Ratio both comfortably above regulatory minimum levels at 14.5 percent and 13.4 percent, respectively. Book value per share rose by 9 percent to P86.20 YoY.
While macroeconomic challenges remain with persistent inflation and foreign exchange and interest rate volatility, BDO said it believes that its established business franchise and strong balance sheet will allow the bank to surmount near-term risks and capitalize on structural growth opportunities to attain long-term sustainable growth.
Meanwhile, BDO’s Board of Directors approved an increase in the regular quarterly cash dividends on common shares of BDO to P0.75 per share beginning on the first quarter of 2023, payable on March 31, 2023. This will be the new dividend policy of BDO going forward.
This higher dividend payout compares favorably with the P0.30 per share quarterly dividend in the past, as the Bank recognizes the importance of providing a stable and sustainable dividend stream consistent with its commitment to shareholders, and its financial performance.