BDO Unibank net income rises 7% in Q1 2025

BDO Unibank reported a 7 percent increase in net income for the first quarter of 2025, reaching P19.7 billion, up from P18.5 billion in the same period in 2024.

The growth was driven by improved non-performing loans (NPLs) and a surge in fee income by 26 percent, while net interest income rose by 6 percent.

However, the bank's total customer loans only grew 12 percent year-on-year to P3.3 trillion, a slower pace than the 13.2 percent clip in 2024.

The bank's NPL ratio slightly declined by 0.1 percent to 1.77 percent.

BDO President and Chief Executive Officer Nestor V. Tan expressed confidence that loans could remain robust this year, mainly due to business loans.

Tan projects the bank's net income growth for the full year might slightly decline below the 12 percent posted in 2024, anticipating two more policy rate cuts by the Bangko Sentral ng Pilipinas (BSP) this year by 50 basis points.

Tan also said January-March earnings were affected by uncertainty amid the ongoing US trade war, prompting companies to rethink expansion plans.

The bank approved an expansion of its peso bond program, raising the limit to P500 billion, as part of its capital management and funding strategy.

BDO's board also noted the bank's return on average common equity of 13.8 percent for the first quarter.