BDO announced on Monday, July 27, that its net income in the 1st 6 months of the year stood at P4.3 billion, lower than the P20.1 billion in the same period last year.
The bank booked total provisions of P22.4 billion in anticipation of potential delinquencies due to the coronavirus pandemic.
Gross non-performing loan (NPL) ratio increased to 1.95%, while NPL cover settled at 139.4%.
“The provisions are anticipatory in nature, and meant to safeguard the balance sheet. By recognizing the provisions upfront, the bank can now focus on growing its business as restrictions under ECQ/GCQ (enhanced community quarantine/general community quarantine) are gradually relaxed,” BDO said.
Net interest income went up by 17%. Customer loans rose by 11% to P2.3 trillion, while total deposits went up by 9% to P2.6 trillion.
Current and savings account deposits expanded 19%, now accounting for 77% of total deposits.
As of end-June 2020, branch operations have been fully restored from only 45% at the start of the ECQ in mid-March 2020.
“Going forward, BDO believes that its solid balance sheet, sustained business growth, and dedicated team effort will allow the bank to weather the COVID-19 crisis and sustain its long-term performance post-pandemic,” BDO said. – Rappler.com