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.