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 return on equity 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, supported by 12% loan growth.

• Fee-based income surged 26% year-over-year, driven by card fees, payments, wealth management, and investment banking.

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

• Provisions for credit losses at PHP 3 billion, translating to 38 basis points in credit cost.

• Gross operating income grew 10% to PHP 68.0 billion.

Outlook and guidance

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

• Margins steady but under 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.

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

• Credit costs guided to remain in the low-40s or sub-40 basis points.