BDO Unibank, the Philippines' largest lender led by the Sy family, posted a net profit of P20.1 billion in the first quarter of 2026, marking a two percent increase from the same period last year. The growth was fueled by robust loan expansion and higher interest earnings, which helped offset provisions set aside for potential risks arising from global tensions, particularly in the Middle East.
Key Drivers of Profit Growth
The bank's loan portfolio surged by 16 percent to reach P3.8 trillion, while interest earnings climbed 11 percent. Additionally, BDO's insurance business recorded a 27 percent jump in contributions, further boosting profitability. Despite these gains, the bank increased its precautionary reserves to mitigate uncertainties in the global economic landscape.
Asset Quality and Capital Strength
On a positive note, non-performing loans declined, reflecting improved asset quality. BDO maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 13.3 percent, well above regulatory requirements. This underscores the bank's resilience and prudent risk management amid a challenging environment.
