BDO shares rise after reporting 2024 earnings

BDO UNIBANK, Inc. was one of the most actively traded stocks in the local market last week after disclosing its 2024 earnings and partnership with a Japanese bank.

Data from the Philippine Stock Exchange showed that P2.94 billion worth of 19.83 million BDO shares were traded from Feb. 24 to 28.

The Sy-led bank’s shares inched up by 5.6% to P150 apiece week on week last Friday from P142 on Feb. 21. Since the start of the year, the stock has increased by 4.2%.

BDO became the fifth most actively traded stock last week following the release of its 2024 earnings, which showed a strong return on equity (RoE).

“BDO’s full-year 2024 earnings fell within Unicapital Securities’ and the consensus estimates and delivered a 15.1% RoE, which is superior compared to its peers,” Wendy B. Estacio-Cruz, head of research at Unicapital Securities, said in an e-mail.

Ms. Estacio-Cruz also noted that the expansion of its partnership with Shizuoka Bank Ltd. “boosted” investor optimism.

“This boosted investor optimism as the partnership should increase the bank’s client base by supporting Japanese companies investing in the Philippines. This should also help grow its corporate banking, remittance, and trade finance sectors while reinforcing its role in cross-border economic activities,” Ms. Estacio-Cruz added.

In a press release disclosed to the local bourse last week, BDO reported an 11.73% year-on-year rise in attributable net income to P82.02 billion in 2024 from P73.41 billion in 2023.

Robust growth across its core businesses increased the bank’s consolidated net income by 33.4% to P57.05 billion from P42.79 billion the year prior.

Meanwhile, BDO’s net interest income also picked up by 8.24% to P186.60 billion in 2024 from P172.39 billion a year earlier. The bank’s net interest margin stood at 4.4%.

Customer loans and total deposits rose year on year by 9% and 14%, respectively.

Ms. Estacio-Cruz gave a full-year forecast for 2025 of P290.4 billion in revenue and P91.4 billion in net income.

In a separate report, BDO expanded its partnership with Shizuoka Bank Ltd. to boost trade and investment with Japanese companies in the country.

The expanded partnership with Shizuoka Bank enables companies to connect with the right partners, streamline financial transactions, and navigate regulatory landscapes, the bank said in a statement.

In a statement, the parties announced that they had signed a memorandum of understanding to enhance their business alliance and support Japanese firms in the Philippines.

Under the expanded partnership, Shizuoka Bank expects a larger client base in the Philippines through additional investments and business-matching initiatives.

Shizuoka Bank is one of the group companies of Shizuoka Bank Group. It is a leading regional bank based in Shizuoka Prefecture, operating 177 branches and 26 sub-branches. Its network extends beyond Shizuoka Prefecture, with branches in Japan’s three major economic centers—Tokyo, Osaka, and Nagoya.

Ms. Estacio-Cruz set a support level at P145 apiece and a resistance level at P156 apiece. — Lourdes O. Pilar