MANILA, Philippines – Four major banks in the Philippines – BDO Unibank, Inc. (BDO), Bank of the Philippine Islands (BPI), Philippine National Bank (PNB), and Union Bank of the Philippines (UnionBank) – have all reported strong financial performances for the first half of 2024, although BDO led the pack with its highest-ever semestral profit for the Sy-led bank.

BDO earned a net income of P39.4 billion for the first six months of 2024, reflecting a 12% year-on-year increase. This was attributed to the “stronger momentum from its core intermediation and fee-based services.” Non-interest income also grew by 13%, partly due to the recovery in life insurance premiums.

The Philippines’ biggest bank also continued to grow as its gross customer loans expanded by 13% and its total assets hit P4.7 trillion as of June 30, 2024. Total deposits also went up by 13% to P3.7 trillion.

Meanwhile, BPI recorded a P30.6 billion net income, a 21.5% rise. Total revenues surged by 23.8%, reaching P81.2 billion, which the bank attributes to a 22.2% increase in net interest income (61.3 billion), a 28.8% increase in fee income (P17.0 billion), and foreign exchange gains of P2.2 billion.

Total loans for the Ayala-led bank reached P2.0 trillion, up 15.8% year-on-year, while total assets reached P3.1 trillion. Total deposits also grew by 14.4% to P2.5 trillion.

PNB achieved a net income of P10.3 billion, bolstered by a 17% increase in interest income from its loan portfolio and treasury assets. The bank managed to keep its net interest margin healthy at 4.37%, up from 4.14% in the same period last year. The Tan-led bank has grown its total consolidated assets to P1.26 trillion.

UnionBank reported a net income of P5.1 billion for the first half of 2024, with its Q2 net income surpassing Q1 by over 50%, largely due to the reduced expenses following the completed integration of the acquired Citi consumer business. Net interest income grew by 14.8% to P27.5 billion, supported by a net interest margin of 5.7%, which the Aboitiz-led bank said was “among the highest in the banking industry.” UnionBank’s total assets stood at P1.1 trillion.

The asset quality across the two big banks remained stable. BDO reported a non-performing loan (NPL) ratio of 2.06%, with an NPL cover of 169%. BPI’s NPL ratio was at 2.20%, maintaining “sufficient” NPL coverage at 127.6%. Meanwhile, PNB and UnionBank did not mention information on their NPLs in their press releases.

The banks also continued to invest in sustainable projects. BDO issued its third ASEAN Sustainability Bonds in late July, raising P55.7 billion for eligible projects. BPI has also announced its Fixed-Rate ASEAN Sustainable Bonds, which has an offer period that ends on August 2. Meanwhile, PNB, in partnership with the Asian Development Bank, is financing the development, construction, and operation of rooftop solar PV systems. – Rappler.com