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, with ROE at 15%, driven by growth in loans, investment securities, and service businesses.

• 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 up 16% to PHP 55.3 billion, led by fee income and insurance operations.

• Gross operating income grew 11% to PHP 193.5 billion; operating expenses increased 13% to PHP 107.0 billion.

• Customer loans grew 13% year-over-year to PHP 3.07 trillion, outpacing industry growth of 11%.

• Deposits rose 10% to PHP 3.74 trillion; book value per share increased 13% to PHP 106.50.

• Cost-income ratio improved to 55% from over 60% historically.

Outlook and guidance

• Loan growth expected to be sustained, with upside from CapEx loans, PPP projects, and sustainable finance initiatives.

• NIM compression in Q3 seen as temporary; NII growth expected to continue.

• Fee income and insurance operations projected to remain strong.

• Asset quality expected to remain stable; provisions set at 1.5%-2% of loans.

• Committed to expanding renewable energy financing and reducing coal exposure by 50% by 2033.