BDO Unibank, Inc. (BDO), the banking and financial arm of the SM Group, generated a net income of PHP40.6 billion in the first half of 2025, up by a modest 3 percent from PHP39.4 billion last year as growth has been tempered by continuing investments in market coverage and IT spending for operational efficiency.
In a report, BDO said that Return on Average Common Equity (ROCE) stood at 13.9 percent for the period.
Net Interest Income increased by 7 percent as Gross Customer Loans climbed by 14 percent to PHP3.4 trillion, with broad-based growth across all market segments. Deposits also expanded by 8 percent to breach PHP4.0 trillion, with a Current Account/Savings Account (CASA) ratio of 69 percent.
Non-interest income grew by 15 percent, driven by the significant contributions from fee-based income and income from insurance operations.
Asset quality improved further, with Non-Performing Loan (NPL) ratio lower at 1.75 percent, and NPL coverage at 140 percent.
Shareholders’ equity strengthened by 12 percent on the back of profitable operations, with Book Value Per Share up by 12 percent to PHP113.04. The Bank’s Capital Ratio remained strong at 15.4 percent.
The Bank is set to issue its fourth ASEAN Sustainability Bonds on July 29, 2025 with a minimum aggregate issue size of PHP5 billion. Originally set to run from July 9 to 22, 2025, the strong demand from both retail and institutional investors prompted the early closing of the offer on July 14, 2025. The net proceeds will be used to finance and/or refinance eligible projects and further support the growth of the Bank’s sustainable portfolio.
Amid global uncertainties arising from geopolitical tensions and the imposition of US tariffs, BDO said it remains well-positioned to manage emerging risks and capitalize on opportunities given its robust capital base and diversified business franchise.
