Monday, January 18, 2021

BDO Regains Momentum In 3Q 2020

BDO Regains Momentum In 3Q 2020

Spotlight

Families Reinvent The Disney Experience With Globe At Home

Know more about “Disney’s Unboxing Celebrations" experience with Globe At Home!

Made To Be More: STI Gears Up For Another Semester Of Learning

LOOK! STI introduces the ONline and ONsite Education or the ONE STI Learning Model at the beginning of S.Y. 2020-2021.

SM Scholarship Program Receives Support From SM EDD

SM Foundation’s College Scholarship Program continues its mission to support economically challenged but deserving students by providing them access to quality education!

Save The Children Trains Teachers, Parents To Protect Children From Online Sexual Abuse

How can parents keep their children safe from online predators? Here are some simple tips:

BDO Unibank, Inc. (BDO) posted P12.3 billion in net income in the 3Q 2020 despite the continuing impact of the pandemic. This brings earnings for the first nine months of the year to P16.6 billion, a decline of 48% from the same period last year, due to the upfront provisions booked in 2Q 2020 in anticipation of potential delinquencies due to the pandemic.

Despite BDO’s promising results, the bank recognizes that the pandemic difficulties still lie 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.

Loans rose at a more tempered 6 per cent to P2.2 trillion, driven by corporate and consumer accounts. The bank remained supportive of its borrowing clients, ensuring continued access to their credit facilities to help them manage their funding requirements during these challenging times, notwithstanding loan payment deferments under Bayanihan I and II.

Asset quality remained stable, with gross non-performing loans (NPL) ratio at 1.97 per cent. Meanwhile, the NPL cover settled at 138 per cent. Total provisions for 9M 2020 amounted to P23.8 billion, inclusive of the pre-emptive provisions in 2Q 2020.

Total deposits grew to P2.6 trillion, driven by the faster growth in Current Account/Savings Account (CASA) deposits, with almost all of the Bank’s branches operational since 2Q 2020. The bank’s CASA ratio climbed to a new high of 79 per cent. Net interest income (NII) went up by 13 per cent year-on-year to P99.8 billion.

Non-interest income settled at P36.8 billion, led by fee-based income and insurance premiums with P20.2 billion and P10.9 billion, respectively. Wealth management remained resilient with trust volume and fees sustaining steady growth despite soft market conditions. However, some of the bank’s businesses, specifically those that rely on face-to-face interaction, are still gradually rebuilding their volumes.

Operating expenses declined by 3 per cent to P83.6 billion on lower volume-related expenses.

The bank’s balance sheet remains solid with a capital base of P378.6 billion. Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio were at 14.3 per cent and 13.2 per cent, respectively, remaining well above regulatory minimum.

BDO believes that its strong business franchise and robust balance sheet place the Bank in a good position to leverage on a post-pandemic economic recovery.

Latest News

Pangilinan: Philippines Shouldn’t Settle For ‘Pwede Na’ In Choice Of Vaccines Vs Covid

Papayag ka ba na isa ka sa makakatanggap don sa "pwede-na-'to-vaccine"?

Gatchalian To ERC: Demand Refund If Visayan Electric’s Charges Are Unjustifiable

Visayan Electric Company (VECO) should give a refund to its customers if it will be proven that a violation has been committed to its high cost of electricity, Gatchalian said.

CBCP Lauds Gov’t Move To Prioritize Poor Pinoys In Vaccination

CBCP commends the government for prioritizing the poor in the vaccination programs.

Bicol Farmers Receive Free Seeds

Rice farmers in Bicol who were affected by typhoon Rolly receive the “Bags of Hope."

Basilica Friar Calls For Action On Proper Face Mask Disposal

An environmentalist friar addresses the proper disposal of face shields and face masks during his homily.

30 New ‘Modern’ Jeepneys To Ply Cebu City Roads

Beep! Beep! Tingnan ang makabagong disenyong jeep sa Cebu!

1st BGYO Fan Conference Set On January 29 On KTX.PH

Kilig to the bones ba ka mo? Abangan ang mga pasabog sa fans ng bagong P-Pop boy group na BGYO sa kanilang grand launch ngayong Jan. 29 na!

Duterte Meets With China’s Foreign Minister Wang Yi

Alamin ang napagkasunduan nina Duterte at China’s Foreign Minister Wang Yi sa pagbisita nito sa Pinas.

Northern Samar To Hire Displaced Gov’t Nurses

Good news para sa mga nurse sa Northern Samar!

Families Reinvent The Disney Experience With Globe At Home

Know more about “Disney’s Unboxing Celebrations" experience with Globe At Home!