EARNS P10.4B IN FIRST QUARTER OF THIS YEAR: BDO posts P28.2B income in 2020

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BDO Unibank, Inc. (BDO) President Nestor V. Tan, in the bank’s Annual Stockholders’ Meeting held on Friday, reported the bank’s full year 2020 and first quarter 2021 results at P28.2 billion and P10.4 billion, respectively, on the back of the bank’s resilient business franchise despite the continuing challenges brought by the COVID-19 pandemic.

Tan said BDO demonstrated operational resilience and grew its balance sheet amid the difficult operating environment in 2020.

“Net income was lower compared to 2019 mainly due to pre-emptive provisions of P30.2 billion set aside against potential pandemic-induced delinquencies. However, the bank’s pre-provisioning operating profit remained solid with 17 percent year-on-year (YoY) growth over 2019,” Tan said.

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For the first three months of 2021, net income was at P10.4 billion up by 19 percent from a year-ago on the robust performance from service fee businesses that compensated for the weak demand for loans.

Loans dipped by one percent to P2.2 trillion, while total deposits went up by two percent to P2.6 trillion, underpinned by the 11 percent rise in CASA deposits, with the CASA ratio hitting a record 83 per cent.

Non-interest income recovered driven by the strong performance of wealth management and life insurance businesses, as well as the normalization of trading and forex gains. Operating expenses were relatively flat compared to last year.

The bank set aside an additional P2.9 billion in provisions even as the first quarter of 2021 NPL ratio of 2.81 percent remained within expectations, and is still below the three percent NPL ratio projected for end-2020.

NPL coverage is now at 107.1 percent, more than adequate to cover for potential losses.

The bank’s capital base strengthened to P400.9 billion with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) at 14.7 percent and 13.6 percent, respectively, both comfortably above regulatory levels and deemed sufficient to withstand near-term shocks.

Tan said BDO remains resilient in the face of the continuing challenges of the health crisis and will continue to strengthen its business franchise and invest in its digital infrastructure with the ongoing implementation of the bank’s strategic programs.

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