Nestor V. Tan
President and CEO BDO Unibank Inc.
Manila, Philippines – BDO Unibank Inc. President and CEO Nestor V. Tan has urged the Philippine banking sector to brace for potential headwinds, cautioning that global economic uncertainties — particularly the impact of U.S. tariffs and trade policies — could weigh heavily on financial performance this year.
Speaking during a recent industry forum, Tan pointed out that while BDO posted a 7% growth in net income during the first quarter of 2025, this uptick was influenced by short-term factors such as foreign exchange volatility and declining interest rates. He stressed that the first quarter results should not be seen as reflective of the bank’s full-year outlook.
“The 7% growth in the first quarter was actually affected by uncertainty,” Tan said, emphasizing that banks must not be lulled into complacency despite positive early figures.
Tan cited the ripple effects of U.S. tariff actions, warning that these could disrupt global supply chains and dampen investor sentiment, particularly in emerging markets like the Philippines. Although the domestic economy remains largely consumption-driven and resilient, he noted that external shocks could still indirectly affect key sectors.
In response, Tan encouraged fellow banking executives to strengthen their risk management measures, specifically by setting aside higher provisions for potential bad loans.
“In these unpredictable times, it is prudent to expect the worst,” he said. “We must build buffers and prepare for any economic disruption that may come our way.”
Despite the challenges, BDO maintains a positive long-term view, highlighting its strong capital position and commitment to prudent financial management. The bank — the largest in the country by assets — continues to monitor global developments closely, ready to adapt strategies to sustain growth and protect stakeholders.
As the world economy navigates shifting trade dynamics and monetary trends, Philippine banks are expected to remain cautious while exploring opportunities to support the country’s domestic-driven recovery.
