Banco del Bajío ScA Institución de Banca Múltiple (BBAJIO O) Q1 2025 earnings summary

Executive summary

• Net income for 1Q25 was ₱2,491 million, with ROE at 21.3% and ROA at 2.7%, down 10.4% year-over-year.

• Loan portfolio expanded 10.8% year-over-year, with company loans up 12.3% and consumer loans up 17.6%.

• Total deposits grew 10.5% year-over-year, with strong inflows from demand deposits.

• Efficiency ratio improved to 37.4%, outperforming the system average.

• Digital transactions dominate, with Bajionet accounting for 82% of all amounts transacted.

Financial highlights

• Net interest margin (NIM) for 1Q25 was 6.3%, down 68 bps year-over-year due to lower average interest rates.

• Net income for the quarter was ₱2.5 billion, with revenues at ₱6.4 billion, up 0.3% year-over-year.

• Non-interest income rose 25%, with fees and trading income up 20.5%–35.9%.

• Operating expenses increased 10.3% year-over-year.

• EPS for 1Q25 was ₱2.09, down 10.4% from 1Q24.

Outlook and guidance

• 2025 guidance: loan growth 8–11%, deposit growth 9–11%, NIM 6.2–6.3%.

• ROE expected to remain in the high teens through 2026, with net income guidance of 9,300–9,800 million pesos.

• Expense growth guidance for the year is 10–12%, with cost control a top priority.

• Loan growth expected to remain healthy, supported by new client acquisition.

• Fees and trading income expected to grow 10–12%; efficiency ratio targeted at 39–41%.