BDO Unibank Inc. reported that its net income improved 12 percent to ₱82 billion in 2024 from ₱73.4 billion in 2023 due to the solid performance of its core businesses.

In a disclosure to the Philippine Stock Exchange, the SM Group’s banking unit said its earnings translate to a return on capital employed (ROCE) of 15.14 percent for the year.

Gross customer loans grew by 13 percent year-on-year (YoY) to ₱3.2 trillion, with double-digit growth across all segments. Total deposits increased by six percent YoY to ₱3.8 trillion, with current account/savings account (CASA) ratio at 71 percent.

Net interest income and non-interest income both grew by eight percent with the expansion in earning assets and growth in the bank’s service businesses.

Regina Capital Development Corporation Managing Director Luis Limlingan said BDO's performance is in line with expectations and was "supported by the expansion of earning assets and growth in service businesses, coupled with double-digit growth across all segments."

Asset quality remained steady, with non-performing loan (NPL) ratio at 1.83 percent, lower than the industry ratio of 3.27 percent.

NPL coverage was stable at 145 percent versus 144 percent in the previous quarter, using the revised Bangko Sentral ng Pilipinas (BSP) guidelines, which excludes provisions appropriated in retained earnings.

Using the old reporting regime, NPL coverage was at 179 percent in the fourth quarter of 2024, compared to 178 percent in the third quarter last year.

Shareholders’ equity expanded 11 percent YoY on sustained profitable operations, with book value per share increasing 11 percent to ₱107.83. The bank’s Common Equity Tier 1 (CET1) ratio was at 14.1 percent.

BDO opened a total of 71 branches nationwide last year; a majority of these are located in rural and provincial areas, to bring the consolidated network to 1,791.

Sustained branch expansion is aligned with the bank’s strategic focus of broadening its reach, particularly in underserved areas, and enhancing customer convenience and accessibility.

To complement its physical network and future-proof the bank, BDO continues to invest in digital capabilities to offer enhanced products, improve customer experience and generate operational productivity.

“BDO's established business franchise, robust financial performance, and wide distribution network make it well-equipped to pursue new opportunities and maintain long-term sustainable growth and profitability,” the bank said.