BDO Unibank (BDO) announced a robust net income of ₱19.7 billion for the first quarter of 2025, marking a 6.5% increase compared to the ₱18.5 billion recorded in the same period last year. This growth was fueled by consistent strong performance across the bank’s core business segments.
The bank demonstrated strong profitability, achieving a return on average common equity (ROACE) of 13.8% for the quarter. BDO also experienced significant growth in its loan portfolio, with gross customer loans expanding by 12% year-on-year to reach ₱3.3 trillion. This growth was broad-based, reflecting positive momentum across all market segments.
On the funding side, BDO’s deposits grew by 6% to ₱3.8 trillion, highlighting the bank’s ability to attract and retain customer deposits. The bank maintained a healthy current account/savings account (CASA) ratio of 70%, indicating a stable and lower-cost funding base.
BDO also reported an improvement in asset quality. The non-performing loan (NPL) ratio decreased to 1.77%, while NPL coverage stood at a strong 143% based on the updated guidelines from the Bangko Sentral ng Pilipinas (BSP), which now exclude provisions appropriated in retained earnings. Under the previous reporting standard, the NPL coverage would have been even higher at 179% in Q1 2025.
Shareholders’ equity saw a significant 12% increase due to sustained profitable operations, resulting in a 12% rise in book value per share to ₱111.13. The bank’s Common Equity Tier 1 (CET1) ratio also strengthened to 14.4%, up from 13.6% in the first quarter of 2024, indicating a solid capital position.
Looking ahead, BDO announced an increase in its regular quarterly cash dividends on common shares to ₱1.10 per share, effective in the second quarter of 2025. This marks a new dividend policy for the bank, signaling confidence in its future earnings potential and commitment to shareholder returns. Furthermore, BDO will increase its peso bond program to ₱500 billion, providing greater flexibility for future funding needs and strategic initiatives.
