BDO Unibank Inc. reported a lower first half net income year over year due to the impact of Philippine Financial Reporting Standards 9, which was implemented early in 2018 on the investment portfolio of its BDO Life unit, among other things.
The bank said in a July 27 release that net income slipped to 13.1 billion pesos for the first six months of 2018, from 13.3 billion pesos in the prior-year period. Excluding the impact of PFRS9, the net income would have risen by 13% year over year.
Net interest income jumped 19% year over year to almost 46 billion pesos. Non-interest income came to 22.8 billion pesos, down 2% as a 23% growth in insurance premiums to 5.6 billion pesos, and a 7% growth in fees and other income to 17.2 billion pesos were offset by the unrealized mark-to-market losses on BDO Life's portfolio.
Gross operating income grew 11% year over year to 68.8 billion pesos.
The bank posted a gross nonperforming loan ratio of 1.2% for the six months ended June 30, down from 1.3% year over year, while its provisions totaled 3.5 billion pesos.
Its capital adequacy ratio and common equity Tier 1 ratio stood at 14% and 12.4%, respectively.
As of July 26, US$1 was equivalent to 53.41 Philippine pesos.