BDO net income falls to P28.2B in 2020

Sy-led BDO Unibank Inc. saw a double-digit decline in its net income in 2020, as the bank provisioned billions against the potential delinquencies from the COVID-19 pandemic.

BDO said its net income fell to P28.2 billion in 2020 from P44.2 billion in 2019, due mainly to P30.2-billion of preemptive provisions in line with credit policies meant to further its balance sheet.

The bank ended 2020 with a 2.65% non-performing loan (NPL) ratio with coverage at 109.5% and total loan loss reserves equivalent to 3% of gross customer loans.

Net interest income rose 12% to P133.7 billion as loans rose 3% to P2.3 trillion driven by consumer and corporate accounts, as the bank said it continued to assist borrowers in addition to granting loan moratoria under the Bayanihan to Heal as One Act and the Bayanihan to Recover as One Act.

Meanwhile, non-interest income fell 8% to P55.2 billion as business volumes were initially impacted by mobility restrictions given the community quarantines set in place to curb the spread of COVID-19.

"BDO remains cautiously optimistic on a gradual upturn in 2021. With its extensive market reach and devoted workforce, the bank remains committed to providing banking products and services attuned to its customers' needs," the lender said.

BDO said one of the digital upgrades in the pipeline is the QR code-based automated teller machine (ATM) and merchant transactions as part of its next-generation information technology (IT) upgrades.

The bank provides corporate and retail banking services such as traditional loan and deposit products as well as treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, and credit card services.

It currently has over 1,400 operating branches and over 4,440 automated teller machines across the nation, on top of 18 overseas remittance and representative offices overseas.

Shares in the company closed Wednesday at P103.20 apiece, down P1.80 or 1.71% from Tuesday's finish of P105.00. — Jon Viktor D. Cabuenas/BM, GMA News