BDO Unibank Inc. said its net income rose 2% to P20.1 billion in the first quarter of 2026, driven by loan expansion and core business growth.
The country’s largest lender said results were supported by sustained momentum in lending and fee-based businesses, though gains were partly offset by higher provisions as it built buffers against global risks.
Gross loans increased 16% to P3.8 trillion, driven by broad-based growth across corporate, middle market and consumer segments. This lifted net interest income by 11%, offsetting margin pressure from earlier rate cuts.
Deposits grew 15%, with current and savings accounts continuing to anchor funding. Non-interest income rose 6%, while insurance operations expanded 27% during the period.
Pre-provision operating profit posted mid-teens growth, reflecting the strength of the bank’s core franchise despite a volatile operating environment.
Asset quality improved, with the non-performing loan ratio easing to 1.68% from 1.77% a year earlier. NPL coverage remained strong at 132%, among the highest in the industry.
Capital ratios stayed solid, with a common equity tier 1 ratio of 13.3%, while book value per share rose 8% to P119.36.
BDO said its diversified portfolio and dominant market position continue to support long-term growth, even as it increases provisions as a precaution against geopolitical and inflation risks.
