MANILA, Philippines – BDO Unibank posted a 10% drop in net income in the 1st quarter of 2020, as the Philippine economy hibernates to fight the coronavirus pandemic.
BDO, the country’s largest bank in terms of assets, posted a net income of P8.8 billion in the 1st quarter, lower than the P9.8 billion recorded in the same period last year.
BDO said core lending and deposit-taking businesses sustained growth despite the enhanced community quarantine (ECQ).
However, weak capital market conditions impacted its investment portfolio and bottom line.
Amid market uncertainties, BDO maintained its conservative credit and provisioning policies, setting aside provisions of P2.3 billion.
Net interest income, or the difference between revenues generated by interest-bearing assets and the cost of servicing liabilities, amounted to P33 billion, on the back of stable margins.
Total deposits rose by 9% to P2.6 trillion, even with scaled-down branch operations in Metro Manila and the rest of Luzon.
Customer loans went up by 11% to P2.2 trillion on continued growth across all market segments. BDO noted that the lockdowns had started to disrupt the operations of borrowing clients in industries considered “non-essential.”
Non-interest income amounted to P9 billion, largely fee-based income with P8.1 billion and insurance premiums with P3.9 billion.
Operating expenses were slightly lower at P26.8 billion from P28.3 billion in the comparative period last year, mainly due to the ECQ. – Rappler.com