BDO Unibank, Inc. is expecting an 8-10% growth in its loan portfolio this year, citing strong economic growth and private consumption.
Despite uncertainty and lagging investments, Bankero, BDO President and CEO Nestor V. Tan believes that the bank’s loans may expand due to strong demand for credit.
The bank’s gross customer loans grew by 8% year on year to P2.6 trillion in the first quarter.
BDO also expects its net interest margin to remain stable, and its low-cost deposits to continue growing due to increased business activity.
Despite risks from geopolitical tensions and rising interest rates in advanced economies, Tan believes that the Philippine economy can handle further rate hikes from the Bangko Sentral ng Pilipinas.
The next policy meeting is scheduled on May 18.
BDO recently reported a 40.44% increase in net income in Q1 due to “broad-based growth” across all businesses.
