BDO Unibank posted a net income of P10.4 billion in the first quarter of 2021, 19% higher than the same period in 2020 despite weak demand for loans.

BDO attributed the increase to its strong service fee earnings.

The bank said that loans dipped by 1% to P2.2 trillion, while total deposits went up by 2% to P2.6 trillion. (READ: Cautious Philippine banks won’t lend despite Bangko Sentral easing)

The latest figures show some recovery for the Sy-led bank, as 2020 profits dipped by 36% amid the pandemic.

It also noted that its non-interest income recovered, driven mainly by its wealth management and life insurance businesses, as well as trading and forex gains.

BDO set aside an additional P2.9 billion in provisions for bad loans, even as the non-performing loans ratio remained within expectations at 2.81%.

“BDO remains resilient in the face of the continuing challenges of the health crisis and will continue to strengthen its business franchise and invest in its digital infrastructure with the ongoing implementation of the bank’s strategic programs,” BDO said.

BDO is the Philippines’ largest bank in terms of total assets, loans, deposits, and trust funds. – Rappler.com