BDO Unibank’s earnings trimmed on higher opex and provisions

The bank’s opex rose 14% in Q2, whilst impairment loss provisions climbed 38%.

BDO Unibank provisions and operating expenses (opex) will likely lead to lower earnings.

“We cut our 2025F/26F net income forecasts by 6% and 10%, mainly due to upward adjustments in provisions and expenses, which offset the higher gross loan targets,” CGS International said in a company note on 1 August 2025.

The bank— the Philippines’ biggest by asset size— reported a 14% year-on-year (YoY) growth in operating expenses, as well as a sharp rise in impairment loss provisions of 38% YoY, in the Q2 period.

BDO Unibank reported a flat net income in Q2 2025, and raised income by only 3% in the first six months of 2025, below expectations set out by CGS International.

Its net interest margin (NIM) is expected to settle at 4.31%–4.33% for 2025F-26F, whilst return on equity (ROEs) will improve to 14.9%–15.3%, largely within the management’s target of 15%, CGS International wrote.