BDO Unibank (BDO) Deutsche Bank ADR Virtual Investor Conference summary

Financial performance highlights

• Net income for Q1 reached PHP 19.7 billion, up 7% year-on-year, with a return on equity of 13.8%.

• Loan book grew 12%, with broad-based growth across all market segments.

• Fee-based income surged 26% year-on-year, driven by services and wealth management fees.

• NPL ratio improved to 1.77%, with coverage above 140%; book value per share up 12%.

• Quarterly cash dividends increased from PHP 1 to PHP 1.10 per share starting Q2.

Business segments and growth drivers

• Consumer and middle market loan growth accelerated, while large corporate growth was tempered by global uncertainties.

• Over 1,800 branches nationwide, with expansion focused on rural and underserved areas.

• Wealth management, life insurance, and micro SME initiatives expected to drive long-term growth.

• Insurance operations saw mid-teens growth in new business volumes despite mark-to-market impacts.

• CASA deposits rose 6%, maintaining a 70% CASA ratio.

Technology and operational efficiency

• IT investments since 2018 enabled plug-and-play systems, improved reliability, and reduced incidents.

• Big data and analytics leveraged for cross-selling, risk prediction, and fraud detection.

• Robotic process automation and unified client data led to significant cost and time savings.

• Digital banking enhancements included upgraded apps, expanded self-service machines, and a consolidated wealth portal.

• Cybersecurity maturity reached level 5, with no breaches in 2024 and high external ratings.