BDO posts ₱8.8-B net profit in Q1
Published Apr 24, 2020 12:00 am
By JAMES A. LOYOLA
BDO Unibank, Inc. (BDO) reported that its net income dipped 10 percent to ₱8.8 billion in the first quarter of 2020 from the ₱9.8 billion earned in the same period last year.
(Credit: www.bdo.com.ph / MANILA BULLETIN)
In a disclosure to the Philippine Stock Exchange, the firm said its core lending and deposit-taking businesses sustained their growth despite the imposition of the Enhanced Community Quarantine (ECQ) in mid-March.
“However, weak capital market conditions impacted on BDO’s investment portfolio and dragged the bottom line,” it added.
Net Interest Income (NII) amounted to ₱33.0 billion, on stable margins. Customer loans went up by 11 percent to ₱2.2 trillion on continued growth across all market segments, though the ECQ had started to disrupt the operations of borrowing clients classified as “non-essential.”
Meanwhile, total deposits rose by nine percent to ₱2.6 trillion, even with scaled down branch operations in Metro-Manila and Luzon due to transportation and mobility restrictions arising from the ECQ.
Non-interest income amounted to ₱9.0 billion, largely contributed by fee-based income with P8.1 billion and insurance premiums with ₱3.9 billion.
Weak capital market conditions resulted in unrealized mark-to-market (MTM) losses in BDO Life’s equities and unit-linked portfolios, leading to consolidated trading and forex losses.
Gross operating income reached ₱42.0 billion versus ₱42.6 billion in the first quarter of 2019.
The Bank maintained its conservative credit and provisioning policies, setting aside provisions of ₱2.3 billion, even as gross non-performing loan (NPL) ratio remained stable at 1.3 per cent and NPL cover still high at 151.4 per cent.
To safeguard asset quality, the bank has undertaken initiatives which include, among others, rapid portfolio reviews of clients and sectors highly affected by the impact of the ECQ, as well as reassessment of existing provisioning guidelines.
(Credit: www.bdo.com.ph / MANILA BULLETIN)
In a disclosure to the Philippine Stock Exchange, the firm said its core lending and deposit-taking businesses sustained their growth despite the imposition of the Enhanced Community Quarantine (ECQ) in mid-March.
“However, weak capital market conditions impacted on BDO’s investment portfolio and dragged the bottom line,” it added.
Net Interest Income (NII) amounted to ₱33.0 billion, on stable margins. Customer loans went up by 11 percent to ₱2.2 trillion on continued growth across all market segments, though the ECQ had started to disrupt the operations of borrowing clients classified as “non-essential.”
Meanwhile, total deposits rose by nine percent to ₱2.6 trillion, even with scaled down branch operations in Metro-Manila and Luzon due to transportation and mobility restrictions arising from the ECQ.
Non-interest income amounted to ₱9.0 billion, largely contributed by fee-based income with P8.1 billion and insurance premiums with ₱3.9 billion.
Weak capital market conditions resulted in unrealized mark-to-market (MTM) losses in BDO Life’s equities and unit-linked portfolios, leading to consolidated trading and forex losses.
Gross operating income reached ₱42.0 billion versus ₱42.6 billion in the first quarter of 2019.
The Bank maintained its conservative credit and provisioning policies, setting aside provisions of ₱2.3 billion, even as gross non-performing loan (NPL) ratio remained stable at 1.3 per cent and NPL cover still high at 151.4 per cent.
To safeguard asset quality, the bank has undertaken initiatives which include, among others, rapid portfolio reviews of clients and sectors highly affected by the impact of the ECQ, as well as reassessment of existing provisioning guidelines.