BDO Unibank, Inc. reported a net income of ₱19.7 billion in the first three months of 2025 from ₱18.5 billion last year, due to sustained performance across its core businesses. 

The first-quarter income increased by ₱1.2 billion, or 6.5 percent higher than last year’s

BDO President and CEO Nestor V. Tan said during a press briefing on April 25 that the first quarter is not indicative of the bank’s full-year performance, noting that the nearly seven percent growth was “actually affected by the uncertainty.” 

For the coming months, Tan said BDO still sees “a strong pipeline of business.”

For the period, the SM Group’s banking unit said its earnings reflected 13.8 percent return on average common equity (ROCE).

BDO’s customer loans increased by 12 percent to ₱3.3 trillion, driven by growth across all market segments. Deposits grew by six percent to reach ₱3.8 trillion, with a current account/savings account (CASA) ratio standing at 70 percent. Tan noted this was largely supported by the bank’s expanding branch network.

Net interest income rose by six percent due to growth in earning assets, while non-interest income surged by 21 percent. The bank said in an April 25 statement that these were “fueled by the strong performance of fee-based income.”

Asset quality showed improvement, as the non-performing loan (NPL) ratio declined to 1.8 percent, and NPL coverage reached 143 percent under revised Bangko Sentral ng Pilipinas (BSP) guidelines, excluding provisions allocated in retained earnings.

Using the old reporting regime, NPL coverage would have been 179 percent in the first quarter of the year.

Shareholders’ equity rose by 12 percent due to sustained profitability, resulting in a 12 percent increase in book value per share to ₱111.13. 
BDO's Common Equity Tier 1 (CET1) ratio also improved to 14.4 percent, up from 13.6 percent 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,” the bank said. 

But given the declining interest rates, Tan believes the 12-percent net income growth in 2024 will not be replicated this year. 

“It will be a little less. And it’s because of the expected decline in interest rates. Spreads will be affected. It will still have growth, but probably not on the same level as last year.” 

While optimistic about the bank’s performance, he cited rate and foreign exchange (forex) volatility as threats to its growth. He added inflation pressures and the country’s “twin” fiscal and current account deficits.

Moving forward, the bank noted that it “remains well-positioned to navigate potential risks and achieve sustainable growth and profitability with its strong business franchise, market leadership, and robust capital position.”

BDO network is nearing 1,800 branches, combining both network bank and unibank branches. It added 71 branches in 2024 and expects to open 100 to 120 more this year.