BDO Unibank Inc. reported a 14% year-on-year increase in net income for the first quarter of 2025, reaching P20.1 billion, driven by strong loan growth and higher fee income. However, the bank flagged potential headwinds from the escalating conflict in the Middle East, which could weigh on global economic conditions.
In a disclosure to the stock exchange, BDO said net interest income rose 12% to P37.5 billion, while non-interest income climbed 18% to P12.3 billion, supported by robust trading gains and service fees. The bank's total loans expanded by 11% to P2.8 trillion, led by growth in both corporate and consumer lending.
"Our first-quarter results reflect the underlying strength of the Philippine economy and our ability to capture growth opportunities," BDO President and CEO Nestor Tan said. "However, we are closely monitoring the geopolitical tensions in the Middle East, which could disrupt global trade and investor sentiment."
The bank set aside P4.5 billion in loan loss provisions, up from P3.8 billion a year ago, as a prudent measure against potential defaults. Its non-performing loan ratio remained steady at 1.9%, while capital adequacy ratio stood at 14.5%, well above regulatory requirements.
BDO shares closed 2.1% higher on Friday following the earnings release, outperforming the broader market.