MANILA - BDO Unibank Inc saw its net income drop by 36 percent to P28.2 billion last year from P44.2 billion the previous year as it allotted more loan provisions during the pandemic.
BDO has heightened its loan provisions to P30.2 billion last year.
Its non-performing loans (NPL) ratio stood at 2.65 percent, and NPL coverage was at 109.5 percent.
Despite higher lending provisions, BDO said its core business stood strong.
Net interest income grew 12 percent to P133.7 billion on more borrowing from clients, while non-interest income went down 8 percent to P55.2 billion.
The bank said it "remains cautiously optimistic on a gradual upturn in 2021", looking to upgrade its digital footprint to reach more customers.
BDO recently launched money withdrawal through the use of QR codes via BDO Digital Banking app on ATMs and merchant transactions.
Banks are expected to have "tempered" growth this year as they continue to shoulder the bulk of funding requirements of the public and private sectors, as the country still reels from the impacts of COVID-19.