BDO Unibank (BDO) Q2 2024 earnings summary

Executive summary

• Net income for the first half of 2024 reached PHP 39.4 billion, up 12% year-over-year, driven by higher net interest income and robust growth in other operating income.

• Return on equity reached 15.1% year-to-date, among the highest levels recorded.

• Maintained market leadership in total assets, loans, deposits, and trust funds as of June 2024.

• Total resources expanded 13% year-over-year to PHP 4.71 trillion, supported by growth in customer loans and investment securities.

• Extensive domestic and international network, with 1,746 branches and 5,626 teller machines nationwide.

Financial highlights

• Net interest income rose 11% year-over-year to PHP 99.6 billion, supported by stable margins and 13% loan growth.

• Non-interest income increased 13% to PHP 43.3 billion, with fee income constituting about 60% of non-interest income.

• Operating expenses increased 15% year-over-year to PHP 86.5 billion; PPOP rose 7% to PHP 56.3 billion.

• Cost-to-income ratio improved to 60.6% in Q2.

• Total deposit liabilities climbed 13% year-over-year to PHP 3.7 trillion, with time deposits up 41%.

Outlook and guidance

• Sustained growth in customer loans and investment securities is expected to continue supporting resource expansion.

• Margins expected to remain stable; policy rate cuts seen as having limited impact this year.

• Focus on expanding sustainable finance, with a target to reduce coal exposure by 50% by 2033 and coal loans to not exceed 2% of the portfolio.

• Continued investment in digital banking and sustainability initiatives to drive growth and resilience.

• Asset quality expected to remain manageable with sufficient provisions and prudent risk management.