BDO Unibank (BDO) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 reached PHP 19.8 billion, up 7% year-over-year, with ROE at 13.8%.

• Maintained market leadership in total assets, loans, deposits, and trust funds as of March 2025.

• Total comprehensive income rose 32% to PHP 22.8 billion, reflecting improved unrealized gains on debt investments and life insurance reserves.

• Extensive nationwide and international presence, with over 1,800 branches and 5,800+ teller machines.

• Total resources expanded 7% year-over-year to PHP 4.9 trillion, supported by growth in customer loans and investment securities.

Financial highlights

• Net interest income rose 6% year-over-year to PHP 47.8 billion, driven by 12% loan growth.

• Non-interest income increased 21% to PHP 18.6 billion, with fee-based income up 26% year-over-year.

• Operating expenses increased 16% to PHP 40.9 billion, mainly from higher employee benefits, taxes, and advertising.

• CET1 ratio improved to 14.4%, supporting growth and dividend policy.

• Deposits increased 6% to PHP 3.85 trillion; capital rose 12% to PHP 594.9 billion.

Outlook and guidance

• Cautiously optimistic outlook, expecting continued low double-digit loan growth and strong fee income growth.

• Margins expected to face downward pressure due to potential further policy rate cuts.

• Focus on expanding sustainable finance, reducing coal exposure to below 2% of loan portfolio by 2033, and supporting renewable energy projects.

• Credit costs guided to remain in the low 40s or below, with stable NPL coverage.

• Management expects continued growth in loans and deposits, supported by investments in IT and distribution channels.