MANILA — BDO Unibank, Inc. reported a 2 percent increase in net income to PHP20.1 billion in the first quarter of the year, up from PHP19.7 billion in the same period in 2025, driven by continued strength in its core operations.

In a disclosure on Friday, the bank said its net interest income rose by 11 percent, supported by a 16 percent expansion in gross consumer loans, which reached PHP3.8 trillion. Growth was recorded across all market segments.

Total deposits also climbed by 15 percent, with current and savings accounts posting a 7 percent increase.

The bank noted an improvement in asset quality, with its non-performing loan ratio declining to 1.66 percent from 1.77 percent a year earlier.

“In summary, good business growth across the board reflects the strength of the BDO franchise. The balance sheet is healthy so good position for growth, adequate capital, no skeletons in the closet in terms of delinquencies. Very good productive capacity across the board,” BDO president and chief executive officer Nestor Tan said during a separate briefing on Friday.

Tan added that the bank now operates nearly 2,000 branches and branch-like units nationwide.

“We believe that that’s necessary for financial inclusion,” he said.

Despite the positive performance, Tan raised concerns over the potential effects of prolonged tensions in the Middle East.

He noted that there is currently no clear resolution to the conflict and warned that any resulting inflation shock could dampen consumer spending and affect corporate capital expenditures.