BDO nets lower H1 profit on provisioning for potential delinquencies

ABS-CBN News

Posted at Jul 27 2020 03:34 PM

BDO Unibank headquarters in Makati City. Handout


MANILA -- BDO Unibank said Monday said its net income for the first half reached P4.3 billion to reflect provisions in anticipation of potential delinquencies due to the coronavirus pandemic.

The first half net income is down compared to the P20.1 billion in the comparable period last year, the lender said in a statement. It booked total provisions of P22.4 billion on anticipated COVID-19 delinquencies, it said.

"By recognizing the provisions upfront, the Bank can now focus on growing its business as restrictions under ECQ/GCQ are gradually relaxed," it said.

Customer loans rose 11 percent to P2.3 trillion while deposits surged by 9 percent to P2.6 trillion, the country's largest bank in terms of assets said.

As of end-June branch operations have been "fully restored" from only 45 percent at the start of the COVID-19 lockdown, it said. 

Luzon was placed on lockdown in March to curb the spread of the disease.