BDO Unibank, Inc., the Philippines’ largest bank, announced on July 25, 2026, that it earned P40.7 billion in net income during the first six months of 2026. This amount is slightly higher than the P40.6 billion it earned during the same period in 2025.
To understand what this means, think of net income as the profit a company keeps after paying all its bills and expenses. It’s like when you receive allowance and after buying what you need, you still have money left to save—that’s similar to net income for a bank.
Why Did BDO Make More Money?
According to the disclosure filed with the Philippine Stock Exchange, BDO made more money because its main business activities remained strong. Let’s break down the key reasons:
More People Borrowed Money
BDO’s loan portfolio grew by 15% to reach P3.9 trillion. A loan portfolio is simply all the money the bank has lent to people and businesses. When the bank lends money, it charges interest—kind of like a fee for borrowing—and that’s how banks make money. This 15% growth was faster than other banks in the industry, meaning BDO lent out more money than its competitors.
More Money Coming In
The bank’s “net interest income” increased by 11% compared to last year. This is the difference between the interest the bank earns from loans and the interest it pays to people who deposit money. Think of it as the bank’s main way of earning money.
Controlling Expenses
BDO kept its operating expenses growing at a slow pace (single-digit), while its “pre-provision operating profit” increased by 12%. This means the bank was careful about spending money while earning more—like being smart with your allowance.
What About Bad Loans?
One important measure of a bank’s health is its “nonperforming loan” (NPL) ratio. These are loans that borrowers haven’t been paying back on time. BDO’s NPL ratio improved, dropping to 1.64% from 1.75% the previous year. A lower number means fewer people are having trouble paying back their loans, which is good for the bank.
The bank also has an NPL coverage of 132%, which means BDO has set aside more than enough money to cover these bad loans if borrowers can’t pay them back. The bank increased these provisions as a safety measure against potential future problems.
The Bank’s Financial Strength
BDO’s return on equity stood at 12.7%. This measures how well the bank is using shareholders’ money to generate profits. It’s like measuring how efficiently you use your allowance to earn more money.
The bank’s book value per share increased by 8% to P121.78. This represents the value of each share if the bank were to sell everything it owns and pay off all its debts.
BDO’s Common Equity Tier 1 (CET1) ratio was 13.1%, which is a measure of the bank’s financial strength. A higher ratio means the bank has a strong cushion to absorb potential losses—like having emergency savings.
Other Sources of Income
Besides lending money, BDO also earned from other services. Its non-interest income increased by 4%, with insurance operations growing by 14%. The bank also saw its total deposits increase by 13%, while current and savings accounts (CASA) grew by 4%.
About BDO Unibank
BDO is the largest bank in the Philippines based on total assets, loans, deposits, and trust funds under management as of March 31, 2026. The bank operates over 2,000 branches and more than 7,900 ATMs across the country, making it the bank with the widest reach in the Philippines. It also has 13 international offices in Asia, Europe, North America, and the Middle East.
Leadership Changes
The bank also announced that Mr. Jose Alfredo Guinto Pascual, Senior Vice President and Unit Head for Risk Management, will be retiring effective August 1, 2026.
Source Note:This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.
