{"id":328722,"date":"2024-08-04T13:35:27","date_gmt":"2024-08-04T05:35:27","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328722"},"modified":"2024-08-04T13:35:29","modified_gmt":"2024-08-04T05:35:29","slug":"stock-in-focus-bdo-unibank-inc-bdo-5-aug-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bdo-unibank-inc-bdo-5-aug-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: BDO Unibank, Inc. (BDO) – 5 Aug 2024 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>5 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 175.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our BUY rating for BDO Unibank, Inc. (BDO) as we kept our target price (TP) at Php175.00 intact based on our price-to-book ratio (PBR) valuation. We believe the bank is in a decent position to sustain its earnings momentum for the 2nd half (2H) of 2024 and 2025 due to its relevantly strong asset quality. This gives BDO more anchor in terms of a higher-for-longer interest rate environment. Furthermore, we expect its loan growth to get boosted once the BSP starts cutting interest rates.<\/p>\n\n\n\n

Regarding share price performance, BDO is the most underappreciated stock among the top three as it is just up by 10.1% year-to-date (ytd), while Metrobank and BPI have gained by 32.6% and 20.2%, respectively ytd.<\/p>\n\n\n\n

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

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

BDO reported a 1st half (1H) 2024 net income of Php39.4 billion, 12% higher year-on-year (y\/y) and in-line with our estimates. Net interest income grew 11% to Php99.6 billion as gross loans climbed by 13%. Net interest margin (NIM) was flattish at 4.64%. Non-interest income rose 13% related to stronger volume growth and the recovery in life insurance premiums. Operating expenses grew by 15% on
the back of the increased volume transactions, branch expansion, and bigger spending on technology.<\/p>\n\n\n\n

Loan growth still trending upward<\/h3>\n\n\n\n

Gross loans grew by 13% on the back of a stronger growth from its consumer segment at 15.7%. Another good sign was the faster growth in its middle-market segment at 10.5% in 2Q24 vs. 6.7% in 1Q. Management highlighted if this stretches out to 3Q, then it would signify improved business confidence to borrow more.<\/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>