Sy-led BDO Unibank Inc. reported a net income of P12.3 billion in the third quarter, up 2.8% from the previous year on improved margins.
In the nine months to September, however, net income amounted to P16.6 billion, 48% lower than the year ago due to the P23.8 billion provisions booked in anticipation of potential delinquencies amid the pandemic. The bulk of provisions was set aside in the second quarter.
Net interest income grew 13% to P99.8 billion, driven by higher margins and the expansion of its interest-earning assets.
Loans increased by 6% to P2.2 trillion, driven by corporate and consumer accounts as BDO ensured continued access to its credit facilities to help clients manage their funding requirements during these challenging times.
Despite higher earnings in the third quarter, BDO remains cautious about the future ahead.
“The delinquency problem on loans have 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. All of these and more are seen to put pressure on the bank’s earnings,” BDO said.
The bank’s balance sheet remains solid with a capital base of P378.6 billion.