BDO shows resilience as Q1 earnings climb to P10.4B

The Sy family’s banking arm, BDO Unibank Inc. powered through the throes of the pandemic as it reported a 19% jump in profit in the first quarter to P10.4 billion on higher fee-based income.

Strong fee-based earnings made up for the 1% drop in loans to P2.2 trillion.

Total deposits went up by two percent to P2.6 trillion, underpinned by the 11 percent rise in CASA deposits, with the CASA ratio hitting a record 83 percent.

Non-interest income likewise bounced back, driven by the strong performance of wealth management and life insurance businesses as well as the normalization of trading and forex gains.

BDO set aside an additional P2.9 billion in provisions for bad loans even as the first quarter NPL ratio of 2.81% remained within expectations, and is still below the 3% NPL ratio projected for end-2020.

NPL coverage is now at 107.1 percent, more than adequate to cover for potential losses.

The Bank’s capital base strengthened to P400.9 billion with capital adequacy ratio (CAR) and common equity tier 1 (CET1) at 14.7 per cent and 13.6 percent, respectively, both comfortably above regulatory levels and deemed sufficient to withstand near-term shocks.

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