In a resounding testament to its robust strategy and unwavering customer trust, BDO Unibank, Inc. has announced a remarkable 12% year-on-year surge in net income, reaching a staggering PHP82 billion in 2024.
This financial powerhouse, a cornerstone of the Philippine banking landscape, has not only exceeded expectations but also solidified its position as a driving force in the nation’s economic progress.
The impressive growth trajectory is fueled by a dynamic blend of expanding earning assets and the burgeoning success of BDO’s diverse service businesses.
Both net interest income and non-interest income witnessed a healthy 8% growth, showcasing the bank’s ability to capitalize on market opportunities and diversify its revenue streams. This balanced performance underscores BDO’s strategic agility in navigating the evolving financial landscape.
BDO committed to expanding reach, deepen customer relationships
Beyond the headline figures, a deeper dive reveals a bedrock of financial stability. BDO’s non-performing loan (NPL) ratio stands at a commendable 1.83%, a stark contrast to the industry average of 3.27%. This exceptional performance reflects the bank’s prudent risk management and commitment to maintaining asset quality.
Coupled with an NPL coverage of 145% as of the fourth quarter, up from 144% in the previous quarter, BDO demonstrates a strong buffer against potential loan losses, instilling confidence in its stakeholders.
The bank’s commitment to expanding its reach and deepening its customer relationships is evident in its impressive growth in customer loans and deposits. Gross customer loans soared by 13% year-on-year to PHP3.2 trillion, signifying a robust demand for credit across various sectors. Meanwhile, total deposits rose by 6% year-on-year to PHP3.8 trillion, highlighting the continued trust and confidence placed in BDO by its depositors.
“Our strong performance in 2024 is a reflection of our dedication to providing exceptional financial services and our commitment to supporting the growth of the Philippine economy,” a BDO spokesperson stated, emphasizing the bank’s role as a catalyst for national development. “We are particularly pleased with the growth of our service businesses, which demonstrates our ability to innovate and adapt to the changing needs of our customers.”
Improved accessibility and nationwide presence
In a move that further underscores its commitment to accessibility and nationwide presence, BDO opened 71 new branches across the Philippines in 2024. This strategic expansion brings the bank’s total branch network to an impressive 1,791, ensuring that its comprehensive range of financial services is within reach of millions of Filipinos.
This expansion is not just about physical presence; it’s about fostering financial inclusion and empowering communities across the archipelago. By extending its reach, BDO is playing a vital role in bridging the gap between urban and rural areas, providing access to essential financial tools and resources.
The bank’s remarkable performance in 2024 is a testament to its strategic vision, operational excellence, and unwavering commitment to its customers. As the Philippine economy continues to navigate global uncertainties and capitalize on emerging opportunities, BDO Unibank stands poised to play a pivotal role in driving sustainable growth and prosperity for the nation.
The financial community, including the readers of Asian Banking & Finance, are watching closely as BDO continues to chart its course, setting new benchmarks for excellence and solidifying its position as a leading force in the region’s banking sector.
With its robust financial foundation, strategic focus, and unwavering commitment to customer satisfaction, BDO Unibank is well-positioned to navigate the challenges and seize the opportunities that lie ahead, contributing significantly to the Philippines’ economic narrative.
