BDO eyes more branches this year 

BDO Unibank Inc. plans to spend a large part of its capital expenditures (capex) budget this year on expanding its nationwide presence by opening more branches, according to a report by Manila Times.

"We're looking at about 100 to 120 [branches] across the whole group, which means network bank and main bank," BDO President and Chief Executive Officer Nestor Tan said in a briefing on Friday.

BDO, the biggest bank in the country by asset size, currently operates more than 1,700 consolidated branches and over 5,500 automated teller machines across the Philippines.

"Our technology expansion will continue at the current rate that we have here at the moment. I don't have the actual numbers, but those are our two biggest capex categories," Tan added.

Like parent firm SM Investments Corp., Tan said the bank remained "cautiously optimistic" about its growth prospects this year amid ongoing geopolitical and macroeconomic risks.

"Being cautious doesn't mean you pull back; being cautious means that you just have to manage the consequences and prepare for them. It just means that you adjust your actions to take advantage of them," he added.

Tan still expects sustained loan growth this year with a potential upside and stable net interest margins, supported by improvements in assets and CASA, or current account savings account.

He also expects BDO's fee-based businesses to grow further while the bank takes strategic initiatives to extend its positive momentum.

The bank said its nonperforming loans (NPLs), or loans not paid within the agreed-upon timespans, were expected to stay under control, while provisions and earnings capacity have been more than "adequate to cover for potential losses."

BDO started this year on a high note after earning P18.5 billion in the first quarter, up 12 percent year-on-year, following sustained growth across businesses.

Asset quality remained stable quarter-on-quarter, driven by continued conservative credit and provisioning policies, while the NPL ratio and coverage settled at 1.88 percent and 181 percent, respectively.

The annualized return on common equity was 14.3 percent for the first quarter of 2024, while the common equity expanded by 12 percent on continued profitable operations.

In 2023, the strong growth of BDO's core businesses also boosted net income by 38.5 percent to P73.4 billion from 2022's P57.1 billion.

"BDO's mission to 'be the preferred bank in every market it serves' anchors its business philosophy of pursuing long-term growth and profitability while sustaining market leadership, backed by a strong balance sheet and diversified business franchise," it said.

On Friday, the bank's share price fell 1.76 percent to P145.50 with the benchmark Philippine Stock Exchange index slipping by 1.23 percent.