BDO Unibank (BDO) Q4 2024 earnings summary

Executive summary

• Achieved record net income of PHP 82.0 billion in 2024, up 12% year-over-year, with return on equity at 15.1%.

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

• Fourth quarter earnings reached PHP 21.4 billion, also a record high.

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

• Majority owned by the SM Group, leveraging synergies in retail, property, and financial services.

Financial highlights

• Net interest income grew 8% year-over-year to PHP 186.6 billion, with stable margins at 4.35% and asset growth.

• Fee income increased 17%, with accelerating trends into 2024.

• Gross customer loans increased 13% to PHP 3,225.2 billion; deposits grew 6% to PHP 3,794.0 billion.

• Cost-to-income ratio improved to 55.5%.

• Book value rose 11%, and CET1 ratio stood at 14.1%.

Outlook and guidance

• Cautiously optimistic outlook, expecting loan growth in the low teens, supported by a potential CapEx cycle.

• Committed to expanding sustainable finance, targeting a 50% reduction in coal exposure by 2033.

• Focus on supporting renewable energy and green projects, with PHP 898 billion in sustainable finance funded to date.

• Continued investment in digital banking and branch network expansion.

• NIMs expected to remain supported by asset growth rebalancing; consumer loans growing faster than corporate.