BDO posts ₱20.1B Q1 profit as loans surge 16%

Loan growth and stronger deposits show steady banking demand in early 2026.

BDO started 2026 on steady ground, posting a net income of ₱20.1 billion in the first quarter, up 2% from a year ago, even as global uncertainty picked up mid-quarter, including renewed tensions in the Middle East that weighed on sentiment across markets.

Behind the headline figure, the real movement came from scale. Gross loans jumped 16% to ₱3.8 trillion, driven by broad-based demand across corporate, SME, and retail segments, while deposits grew 15% as more funds flowed back into the banking system. 

Current Account and Savings Account (CASA) deposits, which signal everyday transactional and savings money kept in the bank, also grew 7%, signaling stronger liquidity and stickier core deposits even in a more cautious environment.

Prioritizing resilience over expansion

But the quarter also showed a more defensive posture. Profit growth was tempered by higher provisions as BDO built up buffers ahead of potential geopolitical and macro risks, signaling a banking sector prioritizing resilience over near-term earnings expansion.

Asset quality continued to improve, with the non-performing loan ratio easing to 1.68% from 1.77%, while coverage stayed high at 132%, keeping risks well-contained even as lending expands.

On the balance sheet side, capital remains solid. CET1 stood at 13.3%, while book value per share rose 8% to ₱119.36.

What BDO’s Q1 numbers mean for you

How does a ₱3.8 trillion loan book affect the average consumer or business owner?

1. High loan demand = Economic activity: The 16% surge in loans suggests that businesses and retail buyers are still optimistic about spending and expanding, despite high global interest rates.
2. Stickier deposits: The 7% growth in CASA means people are keeping more of their ready cash in banks. This usually happens when consumers are being more cautious with their spending and prioritizing savings.
3. The safety factor: Higher provisions mean your bank is less likely to be rattled by sudden global shocks. For the depositor, this translates to peace of mind; for the borrower, it might mean slightly stricter credit evaluations as banks prioritize high-quality borrowers. 

Pro-tip: If you are looking to apply for a loan in mid-2026, ensure your credit score is in top shape. Banks are currently in a quality over quantity phase, preferring borrowers with stable repayment histories as they navigate geopolitical risks.