BDO Unibank (BDO) Q3 2024 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2024, rose 12% year-over-year to PHP 60.6 billion, driven by growth in loans, investment securities, and service businesses, with ROE at 15%.

• Maintained market leadership in total assets, loans, deposits, and assets under management as of September 2024.

• Total resources expanded 12% year-over-year to PHP 4.8 trillion, supported by deposit growth and sustainability bond issuances.

• Comprehensive income increased 25% to PHP 66.2 billion, reflecting higher unrealized gains on FVOCI securities.

• Extensive domestic and international network, with 1,791 branches and over 5,800 teller machines nationwide.

Financial highlights

• Net interest income rose 9% year-over-year to PHP 138.3 billion; non-interest income increased 16% to PHP 55.3 billion.

• Operating expenses increased 13% to PHP 107.0 billion, mainly from higher employee benefits, occupancy, and advertising.

• Customer loans grew 13% year-over-year to PHP 3.07 trillion, outpacing industry growth.

• Deposits rose 10% to PHP 3.74 trillion; capital adequacy ratio improved to 15.2%.

• Book value per share increased 13% to PHP 106.50.

Outlook and guidance

• Loan growth expected to be sustained, supported by stable macro conditions and potential CapEx loans.

• Focused on expanding sustainable finance, targeting a 50% reduction in coal exposure by 2033 and increasing renewable energy financing.

• Fee income and insurance operations anticipated to contribute further to profitability.

• Asset quality expected to remain stable, with conservative provisioning maintained.

• No material trends or uncertainties are expected to impact liquidity or operations in the near term.