Highlights:
- Core businesses drove earnings growth; ROCE at 13.8
- Gross loans accelerated 12% on broad-based growth
- NPL ratio lower at 1.77% with NPL coverage at 143%
- Capital strengthened with CET1 ratio at 14.4%; Book Value Per Share up 12% to ₱111.13.
BDO Unibank, Inc. (BDO) recorded a net income of ₱19.7 billion in Q1 2025, vs. ₱18.5 billion for the comparable period a year ago, driven by sustained performance across its core businesses. Return on Average Common Equity (ROCE) was at 13.8% for the period.
Gross Customer Loans grew by 12% to ₱3.3 trillion, reflecting broad-based growth across all market segments. Deposits expanded by 6% to ₱3.8 trillion, with a Current Account/Savings Account (CASA) ratio of 70%.
Net Interest Income increased by 6% with the growth in earning assets, while non-interest income rose by 21%, fueled by the strong performance of fee-based income.
Asset quality improved, with Non-Performing Loan (NPL) ratio decreasing to 1.77%, and NPL coverage at 143%, according to the updated BSP guidelines which exclude provisions appropriated in Retained Earnings. Using the old reporting standard, NPL coverage would have been 179% in Q1 2025.
Shareholders’ equity increased by 12% on continued profitable operations, with Book Value Per Share up by 12% to ₱111.13. The Bank’s CET1 ratio was higher at 14.4%, from 13.6% in the same period last year.
Despite economic uncertainties arising from US tariffs and trade policies, the Philippines is expected to remain resilient being a domestic and consumption-based economy. Notably, BDO remains well-positioned to navigate potential risks and achieve sustainable growth and profitability with its strong business franchise, market leadership, and robust capital position.
