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

Financial performance highlights

• Net income reached PHP 19.7 billion in Q1, 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 segment and operational trends

• 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.

• Net interest margin stable at 4.31%; diversified non-interest income from wealth management, payments, and investment banking.

• Insurance operations saw a 3% revenue decline due to mark-to-market impacts, but new business volumes grew mid-teens.

• Cost-income ratio saw a slight uptick due to front-loaded costs and investments in IT and branches.

Strategic initiatives and technology investments

• IT infrastructure overhaul since 2018 enabled plug-and-play agility, reliability, and cybersecurity maturity.

• Digital transformation led to 35% faster transaction times and PHP 600 million in annual savings.

• GenAI and big data deployed for wealth management, credit analysis, and fraud detection.

• Digital user base and usage increased; BDO Pay and self-service machines expanded for 24/7 banking.

• Wealth portal and push notifications enhanced client experience and security.