{"id":325129,"date":"2023-09-28T00:01:08","date_gmt":"2023-09-27T16:01:08","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325129"},"modified":"2023-09-28T00:22:15","modified_gmt":"2023-09-27T16:22:15","slug":"stock-in-focus-bdo-unibank-inc-bdo-28-sept-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bdo-unibank-inc-bdo-28-sept-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: BDO Unibank, Inc. (BDO) – 28 Sept 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BDO<\/td><\/tr>
Company Name<\/strong><\/td>BDO Unibank Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Sept 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 164.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

BDO\u2019s share price has dropped by 12% since reaching its 52-week high last July 25. This gives an opportunity to accumulate the stock as our target price (TP) of Php164.00 offers a compelling upside of 25.6%, including our 2023 dividend yield forecast of 2.3%.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Decent asset quality<\/h3>\n\n\n\n

We see BDO Unibank, Inc. (BDO) maintaining its profitable position for the 2nd half (2H) of 2023 and 2024 given that it has one of the best asset qualities in the industry. Furthermore, it has the 2nd best ROE among banks in our coverage at 13.8%, just behind BPI. We also expect loan growth to be boosted by consumer spending as it benefits from its relationship with SM Retail.<\/p>\n\n\n\n

Earnings recap<\/h3>\n\n\n\n

BDO\u2019s net income jumped 47% to Php35.2 billion. Net interest income rose 29% to Php89.5 billion with net interest margin (NIM) expanding by 63bps. Gross customer loans and deposit liabilities expanded by 8% and 12%, respectively. <\/p>\n\n\n\n

Non-interest income grew by 11% to Php38.2 billion due to robust growth in various fee-based and treasury\/FX businesses. Its 2Q 2023 NPL ratio declined by 3bps to 1.95% q\/q, while its NPL coverage ratio improved to 174%. CET1 was at 13.9%, while CAR was at 15.0% ROE stood at 15.1%, 3.8ppts higher y\/y.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>