BDO reports P28.2B income in 2020 – Malaya Business Insight

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BDO has the largest distribution network in the country, with more than 1,400 consolidated operational branches and more than 4,400 ATMs across the country.

BDO Unibank, Inc. (BDO) Chairman Nestor V. Tan, at the bank’s annual meeting of shareholders held on Friday, announced the bank’s results for the year 2020 and the first quarter of 2021 to 28, 2 billion pesos and 10.4 billion pesos, respectively, on supporting the bank’s resilient commercial franchise despite the lingering challenges posed by the COVID-19 pandemic.

Tan said BDO has demonstrated operational resilience and grown its balance sheet in a challenging operating environment in 2020.

“The net profit was lower compared to 2019, mainly due to preventive provisions of 30.2 billion pesos set aside against possible delinquencies induced by a pandemic. However, the bank’s pre-provisioned operating profit remained strong with 17% year-on-year (year-on-year) growth compared to 2019, ”Mr. Tan said.

For the first three months of 2021, net profit was 10.4 billion pesos, up 19% from a year ago, thanks to strong performance from service fee companies which made up for the weak application for loans.

Loans fell 1% to 2.2 trillion P2, while total deposits rose 2% to $ 6.6 trillion, underpinned by the 11% rise in CASA deposits, with the CASA ratio reaching a low record 83%.

Non-interest income recovered thanks to the good performance of the wealth management and life insurance activities, as well as the normalization of trading and foreign exchange gains. Operating expenses were relatively stable compared to last year.

The bank set aside $ 9.9 billion in additional provisions even as the Q1 2021 NPL ratio of 2.81% remained on target and remains below the 3% NPL ratio expected at the end of 2020.

NPL coverage is now 107.1%, which is more than enough to cover potential losses.

The bank’s capital base strengthened to 400.9 billion pesos, with a capital adequacy ratio (CAR) and level 1 pooled equity (CET1) at 14.7% and 13, 6%, respectively, both comfortably above regulatory levels and deemed sufficient to withstand short-term shocks.

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

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