The Philippines’ largest bank is “cautiously optimistic on a gradual upturn”  in 2021, after its profits plunged by 36% due to the coronavirus pandemic.

BDO Unibank on Wednesday, February 24, said its net income fell to P28.2 billion in 2020 from the P44.2 billion it earned in 2019, as the bank shielded itself from soured loans.

BDO set aside P30.2 billion against potential delinquencies from the pandemic. Non-performing loans ratio stood at 2.65%.

“The bank relied on its strong and resilient business franchise and balance sheet to support core business operations, despite significant hurdles from the pandemic and ensuing economic lockdown,” BDO said.

BDO’s net interest income for the entire 2020 grew by 12% to P133.7 billion, while loans managed to grow by 3% to P2.3 trillion on the back of consumer and corporate accounts.

Deposits grew by 17% to P2.1 trillion.

Meanwhile, non-interest income slipped by 8% to P55.2 billion.

“Business volumes were initially impacted by mobility restrictions, but have since begun to recover gradually. Wealth management, on the other hand, remained resilient with trust volumes and fees sustaining growth,” BDO said. – Rappler.com