{"id":333349,"date":"2025-07-31T01:59:52","date_gmt":"2025-07-30T17:59:52","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333349"},"modified":"2025-07-31T01:59:55","modified_gmt":"2025-07-30T17:59:55","slug":"stock-in-focus-bdo-unibank-inc-bdo-31-july-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bdo-unibank-inc-bdo-31-july-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: BDO Unibank, Inc. (BDO) – 31 July 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>31 July 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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We are retaining our forecast that banks will continue to pivot towards volume-driven growth to offset margin erosion from policy rate cuts. We believe that BDO\u2019s extensive network, coupled with its position as the country\u2019s largest bank, sets them in prime position to lead this volume-driven growth. As such, 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

Still in-line with expectations<\/strong><\/p>\n\n\n\n

BDO\u2019s 1H 2025 earnings rose by 3.0% from the same period last year, slightly lower than the expected P41.1-Billion, driven by robust performance from their core business such as loans and fees income. Due to recent policy rate cuts and competitive market pricing, Net Interest Margin (NIM) narrowed by 4bps to 4.30% in 1H 2025. ROCE and ROA declined to 13.9% (from 15.0% in 1H 2024) and 1.64% (from 1.73%) respectively, as net income growth trailed the growth in common equity and average assets.<\/p>\n\n\n\n

Consistent growth<\/strong><\/p>\n\n\n\n

BDO\u2019s net interest income grew by 7.0% YoY, driven by industry-leading loan growth of 14.8%. On the other hand, non-interest income increased by 9.0%, led by flipping 2Q24\u2019s trading losses to gains of P673.0-Mn. Service charges climbed by 10.0%, attributed to thriving major service businesses like credit cards. Miscellaneous surged by 27.0% to end up at P2.5- Billion, while trust fees rose 9.6% YoY on the back of AUM growth.<\/p>\n\n\n\n

A milestone<\/strong><\/p>\n\n\n\n

Looking at the balance sheet, we noted that net loans jumped by 14.8% attributed to 14% expansion in customer loans and a 66% surge in interbank loans. Deposits breached the P4.0-Trillion mark for the first time, which climbed by 6.3% YoY, citing growth in demand and time deposits by 13.0% and 11.0% respectively. Faster loan growth relative to deposit growth translated to a 5.3ppts improvement in the loan-to-deposit ratio which expanded to 86.2%.<\/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>