The improvement in the 3rd quarter brought 9-month earnings to P16.6 billion, a 48% decline.
While profits of the Philippines’ largest bank improved from the 78.6% dip in the 1st half of the year, BDO warned that more issues continue to put pressure on earnings.
“The delinquency problem on loans [has] not yet peaked, interest rate caps on credit cards will be instituted soon, and there are added costs in doing business as a result of necessary precautions inherent in the bank’s operations,” BDO said.
Loans rose at a tempered 6% to P2.2 trillion, driven by corporate and consumer accounts. (READ: From malls to banks: The pandemic’s domino effect)
Gross non-performing loan (NPL) ratio slightly went up to 1.97%, while NPL cover settled at 138%. Total loan provisions amounted to P23.8 billion.
Total deposits grew to P2.6 trillion, while non-interest income settled at P36.8 billion.
“BDO believes that its strong business franchise and robust balance sheet place the bank in a good position to leverage on a post-pandemic economic recovery,” it said. – Rappler.com