BDO books net profit of P82 billion in 2024

BDO UNIBANK, Inc.’s net profit climbed by 11.73% in 2024 on the back of the solid performance of its core businesses.

The Sy-led bank’s attributable net income rose to P82.02 billion last year from P73.41 billion in 2023, according to its financial statement disclosed to the stock exchange on Monday.

This translated to a return on common equity of 15.1%, a return on average equity of 15%, and a return on average resources of 1.8%.

“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.

BDO’s net interest income increased by 8.24% to P186.596 billion in 2024 from P172.39 billion a year prior. Interest earnings rose by 17.4% to P272.04 billion, while interest expense increased by 44.04% to P85.44 billion.

The bank’s net interest margin stood at 4.4%.

Other operating income rose by 8.54% to P70.89 billion last year from P65.32 billion in 2023.

“Net interest income and non-interest income both grew by 8% with the expansion in earning assets and growth in the bank’s service businesses,” BDO said.

Its gross customer loans expanded by 13% year on year to P3.2 trillion in 2024. The bank said it saw double-digit growth across all loan segments.

“Asset quality remained steady, with nonperforming loan (NPL) ratio at 1.83%, lower than the industry ratio of 3.27%. NPL coverage was stable at 145% versus 144% in the previous quarter, using the revised BSP (Bangko Sentral ng Pilipinas) guidelines which exclude provisions appropriated in retained earnings,” BDO said.

“Using the old reporting regime, NPL coverage was at 179% in the fourth quarter of 2024, compared to 178% in the third quarter of 2024.”

Total deposits went up by 6% to P3.8 trillion, with low-cost current account, savings account or CASA deposits making up 71% of the total.

Meanwhile, net income attributable to BDO’s insurance business also increased by 7.42% year on year to P6.85 billion in 2024 from P6.37 billion in 2023.

On the other hand, the bank’s operating expenses went up by 12.34% year on year to P146.61 billion in 2024 from P130.51 billion.

BDO’s total assets expanded by 8.9% year on year to P4.88 trillion at end-2024 from P4.48 trillion.

Total equity stood at P577.4 billion.

The bank’s total capital ratio was at 15.2% in 2024, up from 14.9% in 2023. Its common equity Tier 1 ratio also improved to 14.1% from 13.8%.

Liquidity coverage ratio was at 132.1%, up from 123.2% a year prior.

The BDO Group had 1,791 local branches at end-2024 as well as two foreign branches.

“The bank opened a total of 71 branches nationwide, majority of which are located in rural and provincial areas,” BDO said. “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.”

The bank has launched the new BDO Online website, www.onlinebanking.bdo.com.ph, it said separately on Monday. Customers can log in using their existing online banking credentials.

“We recognize that customers have diverse banking needs that arise at different times of the day,” BDO Digital Banking Head Roy Villareal said. “With this in mind, our goal is to provide a suite of complementary banking channels that allow customers to transact conveniently and securely, whether through our online platform or our extensive branch network. The new BDO Online website is designed to enhance security, accessibility, and overall user experience.”

The new website features key enhancements, including login protection via SMS one-time password or push confirmation via the BDO Online app, increased fund transfer limits via PESONet and a reduced InstaPay fee of P10, free BDO-to-BDO transfers, and card management tools, including the option to lock cards and set transaction limits.

BDO said the website complements its existing digital banking ecosystem, which includes the BDO Online and BDO Pay mobile apps.

The bank’s shares went down by P1 or 0.7% to close at P141 each on Monday.

DOMINION HOLDINGSMeanwhile, BDO’s subsidiary Dominion Holdings, Inc. (DHI) saw its net profit decrease by 27.11% to P202.12 million kast year.

“The lower income is attributed to reduced funds available for investment, following the declaration of P3.2 billion in cash dividends in May 2024,” it said.

Its income dropped by 21.72% to P269.06 million. Operating costs and expenses also went down by 5.86% to P17.05 million.

DHI’s shares rose by eight centavos or 5.48% to P1.54 apiece on Monday. — Aaron Michael C. Sy