The underlying message was that while the Philippines’ growth story remains solid, the country doesn’t exist in a bubble, and external risks remain.
BDO booked record high profits of P82 billion last year. Its profit performance in the first quarter of 2025 accounts for 24 percent of earnings in the past year.
What BDO said
“Despite economic uncertainties arising from US tariffs and trade policies, the Philippines is expected to remain resilient being a domestic and consumption-based economy,” said the banking giant, which is owned by the Sy family’s SM Group.
“Notably, BDO remains well-positioned to navigate potential risks and achieve sustainable growth and profitability with its strong business franchise, market leadership, and robust capital position,” it added.
Key data points in the first quarter
• Customer loans grew 12 percent to P3.3 trillion, reflecting broad-based lending across all segments.
• Deposits rose 6 percent to P3.8 trillion, with CASA deposits accounting for 70 percent, indicating stable, low-cost funding.
• Net interest income increased 6 percent, driven by growth in the bank’s earning assets.
• Non-interest income surged 21 percent, led by strong fee-based revenues such as service fees and commissions.
• Non-performing loan (NPL) ratio improved to 1.77 percent, signaling stronger borrower performance.
• NPL coverage stood at 143 percent under new BSP rules—or 179 percent under the old standard—reflecting solid reserve levels.
Strong asset base
Shareholders’ equity rose by 12 percent on continued profits, pushing book value per share up to P111.13.
The bank’s Common Equity Tier 1 (CET1) ratio, an important measure of financial strength, improved to 14.4 percent, up from 13.6 percent a year ago, reinforcing BDO’s ability to absorb potential shocks and meet regulatory standards.
