{"id":331708,"date":"2025-02-28T01:01:51","date_gmt":"2025-02-27T17:01:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331708"},"modified":"2025-02-28T01:02:32","modified_gmt":"2025-02-27T17:02:32","slug":"stock-in-focus-bdo-unibank-inc-bdo-28-feb-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bdo-unibank-inc-bdo-28-feb-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: BDO Unibank, Inc. (BDO) – 28 Feb 2025 by AP 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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 180.18<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Albeit the continuance of the Bangko Sentral\u2019s rate cut cycle would translate to lower lending rates for the bank moving forward, we believe that the resulting pick-up in loan growth would still be a net positive for the company\u2019s bottomline. Additionally, the BSP recently cut RRR by 200 bps to 5% which would translate to additional lending power for BDO. Given the bank\u2019s dominance in the Philippine banking space coupled with their decent earnings performance, we maintain our BUY rating for BDO with a Target Price of P180.18.<\/p>\n\n\n\n

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

Earnings in-line with estimates<\/strong><\/p>\n\n\n\n

BDO\u2019s 2024 Earnings of P82.0-Billion (+11.7% YoY) were in-line with our estimates of P80.3-Billion. The solid earnings performance was attributable to notable all-around growth across their core businesses with both Net Interest Income and Non-interest income posting growth rates of 8% on expansion in earning assets. Gross Customer Loans picked up by 13% YoY to end up at P3.2-Trillion with all segments posting double-digit growth.<\/p>\n\n\n\n

The growth drivers<\/strong><\/p>\n\n\n\n

Taking a deeper dive, we note that Consumer loans posted the highest growth rate at 16.1%, followed by corporate\u2019s 12.6%, and lastly, middle market\u2019s 11.8%. Looking specifically at consumer loans, we note that a notable amount of earnings growth for the fourth quarter is attributable to the fact that holidays are typically a strong season for consumer lending. Moving on to NIMs, we note that 4Q NIMs posted sequential growth of 8bps on the back of the rebalancing of the company\u2019s loan portfolio toward higher-yielding segment, the effectivity of BSP\u2019s RRR cut by 250bps last October 25, and locking in higher rates for the expansion of their investment portfolio.<\/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>