BDO Unibank, Inc. (PSE: BDO) weathered a transformative 2024 by delivering impressive financial results, doubling down on digital innovation, and taking steps to reward its shareholders with a new dividend declaration for the first quarter of 2025.
The numbers tell a compelling story - BDO's net income surged to ₱82 billion in 2024, marking a 12% jump from the previous year's ₱73.4 billion. This translated to a robust 15.14% return on common equity (ROCE), highlighting the bank's knack for generating substantial returns from its core business.
Let's dive into the key metrics:
- Loan Growth - Customer lending hit new heights at ₱3.2 trillion, reflecting a 13% year-over-year surge with impressive gains across every lending category.
- Deposits and Liquidity - Total deposits climbed 6% to reach ₱3.8 trillion, while maintaining an enviable Current Account/Savings Account (CASA) ratio of 71% - a testament to the bank's strong liquidity position and customer confidence.
- Income Streams - Both interest and non-interest revenue streams saw parallel 8% growth, showcasing the benefits of BDO's diversified approach to banking.
When it comes to asset quality, BDO continues to outshine its peers:
- Asset Quality - The bank maintained an impressive non-performing loan (NPL) ratio of 1.83%, significantly outperforming the industry's 3.27% average. With NPL coverage reaching 145% under updated BSP guidelines, the bank's risk management prowess is evident.
- Capital Position - The bank's financial foundation grew stronger, with shareholders' equity climbing 11% and book value per share reaching ₱107.83. A robust common equity tier 1 (CET1) ratio of 14.1% provides ample cushioning against potential market turbulence.
BDO's physical expansion strategy continued to evolve:
- Branch Network Growth - The addition of 71 new locations pushed BDO's nationwide presence to 1,791 branches, with special attention paid to reaching underbanked communities.
- Digital Investments - While expanding its brick-and-mortar footprint, BDO hasn't missed a beat in modernizing its digital infrastructure, creating a hybrid approach that caters to diverse banking preferences.
On the sustainability front, BDO made significant strides through its ASEAN Sustainability Bond program:
- Sustainability Bonds - The bank orchestrated two major bond offerings in 2024, raising ₱63.3 billion in January followed by ₱55.7 billion in July, totaling ₱119 billion. These funds target initiatives aligned with national sustainable development priorities, operating under one of the region's most comprehensive Sustainable Finance Frameworks - spanning 29 categories across Green, Blue, Social, and Gender financing initiatives.
Fresh off these achievements, BDO's Board greenlit a Q1 2025 cash dividend of ₱1.00 per common share during their February 22, 2025 meeting.
- Dividend Details:
- Amount - ₱1.00 per share
- Record Date - March 11, 2025
- Payment Date - March 31, 2025
- These dividends will be drawn from 2024's surplus profits, taking into account previous distributions and capital requirements.
This latest dividend announcement reflects BDO's ongoing commitment to sharing its success with stakeholders while maintaining momentum in its growth initiatives.
As we analyze BDO's trajectory through 2024 and beyond, several factors stand out:
- Market Leadership - No other Philippine bank can match BDO's extensive network or its commanding position in deposits, loans, and trust services.
- Balanced Growth - The bank's ability to maintain stellar earnings while investing in future capabilities speaks to its sophisticated management approach.
- Sustainability Focus - By embracing ESG principles through concrete actions, BDO is positioning itself at the forefront of sustainable banking in Southeast Asia.
Through its blend of traditional banking strength and forward-thinking initiatives, BDO exemplifies how established financial institutions can evolve while maintaining their competitive edge in today's dynamic market.