BDO Unibank Inc. is giving its shareholders cash dividends amounting to P4.39 billion as well as a 20 percent stock dividend after delivering a 51 percent increase in net income to P42.8 billion last year.

During the Bank’s Annual Stockholders’ Meeting, BDO President Nestor V. Tan reported that the Bank sustained its growth momentum through the first quarter of this year as earnings rose by 13 percent year-on-year to P11.7 billion.

In the same meeting, BDO stockholders approved the declaration of stock dividends equivalent to 20 percent of the Bank’s outstanding capital stock, as well as an increase in the Bank’s authorized capital stock (common shares) from 5.5 billion to 8.5 billion shares, and the amendment to the Bank’s Articles of Incorporation to reflect the increase.

The record and payment dates for the stock dividend are still subject to regulatory approvals.

The stock dividends declared for the common shares will be issued pursuant to the increase in the authorized capital stock, while the stock dividends declared for the preferred shares will be issued out of the unissued preferred capital stock, which issuance was approved on the same date.

At the Bank’s Special Board of Directors meeting held earlier on the same day, the Board also approved a P1.00 special cash dividend on the Bank’s common shares.

Record date for the special cash dividend has been set on May 6, 2022 and payment date is on May 31, 2022.

“The special cash and stock dividend declaration is a testament to BDO's commitment to provide consistent, steady returns and value to its shareholders on the back of the Bank's positive performance in 2021 and the first quarter of 2022,” BDO said.

On the stock dividends, shareholders will gain additional shares which they may either keep for the long-haul and grow in value, or in case they need liquidity, sell through the stock market at their discretion.

Record and payment dates of the stock dividends shall be fixed and disclosed after securing regulatory approval, within the periods provided by law.

Meanwhile, the hike in BDO's authorized capital stock provides the Bank flexibility to increase its capital during periods of rapid organic growth or in the event of inorganic opportunities.

This will allow BDO to continue to expand its business, strengthen its franchise, and deliver quality earnings to position the Bank for long-term sustainable growth.