BDO Unibank, Inc.’s net profit grew by 13.26% year on year in the third quarter, driven by the continued growth of its core businesses, it reported on Monday.

The Sy-led bank’s attributable net income stood at P21.18 billion in the quarter ended September, up from P18.7 billion in the same period last year, the bank’s financial statement disclosed to the stock exchange showed.

This brought BDO’s nine-month net profit to P60.62 billion, climbing by 12.47% from P53.9 billion a year ago, “driven by the sustained contribution of its core intermediation and fee-based service businesses,” it said.

This translated to a return on average common equity of 15.04%, down from 15.13% a year prior, and a return on average assets of 1.75%, up from 1.73%.

“BDO remains well-positioned to capitalize on emerging opportunities and sustain long-term growth and profitability with its strong business franchise, solid balance sheet and extensive distribution network,” the bank said in a statement.

Net interest income rose by 5.78% to P46.82 billion in the third quarter from P44.26 billion in the same period last year amid the expansion of its earning assets.

Interest earnings rose to P69.24 billion from P60.02 billion, mainly driven by higher interest income on loans amid an elevated rate environment. Interest expenses likewise went up to P46.82 billion from P44.26 billion.

Net interest margin stood at 4.32% at end-September, inching down from 4.38% a year prior due to “competitive pricing pressures.”

Meanwhile, BDO’s other operating income grew by 17.72% year on year to P19.27 billion in the third quarter, amid “robust growth in fees and service charges, treasury and forex (foreign exchange) gains and income from insurance operations,” it said.

On the other hand, the bank’s operating expenses increased by 10.43% to P35.9 billion in the three-month period from P32.51 billion a year ago.

“Gross customer loans increased 13% year on year on broad-based growth across all market segments,” BDO said.

Meanwhile, total deposits expanded 10% year on year at end-September as demand and time deposits grew by 12% and 23%, respectively.

Its current account, savings account or CASA deposit ratio was at 69%.

The bank’s nonperforming loan (NPL) ratio stood at 1.82% at end-September, while its NPL coverage ratio was at 178%.

BDO’s total assets expanded by 12% year on year to P4.8 trillion as of September.

Total equity likewise grew by 13% to P570.2 billion.

Its capital adequacy ratio was at 15.22% at end-September, inching down from 15.61% a year prior as the growth in its risk-weighted assets outpaced the increase in capital, BDO said.

The bank’s liquidity ratio also slipped to 34.34% from 35.22% as its customer loans grew at a faster pace.

BDO’s shares gained 30 centavos or 0.19% to close at P160 each on Monday. — A.M.C. Sy