Introduction
BDO Unibank (BDO) is the largest commercial bank in the Philippines and a key player in the nation’s economic growth. Backed by the SM Group, the country’s biggest conglomerate, BDO continues to deliver strong financial performance driven by expanding lending operations, digital banking growth, and consistent profitability.
Company Overview
Founded in 1968 and headquartered in Makati City, BDO Unibank, Inc. operates as a full-service universal bank offering retail, corporate, investment, and remittance banking. It is part of the SM Investments Corporation, one of the Philippines’ most powerful business groups.
BDO has an extensive network of over 1,600 branches and 4,600 ATMs across the country and maintains overseas offices in Hong Kong, Singapore, Dubai, and Tokyo, catering to millions of Filipinos abroad.
The bank’s digital transformation through BDO Online and BDO Pay has also improved customer access and strengthened its leadership in digital financial services.
BDO Unibank (BDO) Financial Performance
According to BDO’s official reports:
- 1H 2025 Net Income: ₱37.1 billion, up 10% year-on-year from ₱33.6 billion in 2024.
- Total Assets: Over ₱4.2 trillion, maintaining its position as the largest bank in the Philippines.
- Net Interest Income: Increased by 12%, supported by higher loan volumes and improved margins.
- Capital Adequacy Ratio (CAR): 14.6%, well above regulatory requirements.
- Non-Performing Loan (NPL) Ratio: Around 1.8%, reflecting strong credit quality.
(Sources: BDO Unibank Investor Relations, 2025 Mid-Year Report; Philippine Stock Exchange)
Growth Drivers
- Digital Banking Expansion
BDO continues to invest heavily in online platforms such as BDO Online and BDO Pay, capturing younger and tech-savvy customers. - OFW Remittance Growth
Overseas Filipino Workers (OFW) remittances provide a steady stream of fee income and deposits, supporting lending activities. - SM Group Synergy
Being part of the SM Group gives BDO a strong ecosystem advantage, connecting retail, real estate, and financial services. - Economic Growth Tailwind
The Philippines’ growing middle class and strong domestic consumption are driving credit and deposit growth.
Risks and Challenges
- Interest Rate Volatility: Lower interest rates could narrow net interest margins.
- Competition: Intense rivalry from BPI, Metrobank, and Security Bank.
- Regulatory and Credit Risks: Changes in banking regulation or higher NPLs could impact earnings.
Investment Outlook
BDO Unibank (BDO) remains a cornerstone holding for investors seeking exposure to the Philippine financial sector.
Its strong balance sheet, consistent profit growth, and reliable dividend policy make it one of the most stable long-term investments in the market.
With digital banking expansion and continued economic growth, BDO is well-positioned to maintain its leadership and deliver sustainable shareholder value in the coming years.
