BDO says earnings back to pre-pandemic level in Jan to Sept 2021

ABS-CBN News

Posted at Oct 25 2021 12:28 PM

BDO Automated Teller Machine. BDO/Handout
BDO Automated Teller Machine. BDO/Handout

MANILA - BDO Unibank on Monday said its net income for the first 9 months of 2021 reached P32.4 billion which brought earnings back to pre-pandemic levels.

The total is higher compared to the P16.6 billion a year ago, BDO said in a disclosure to the stock exchange. 

"Earnings normalize to pre-pandemic levels, shows stable quarter on quarter business performance with loan growth turning positive," the bank said. 

"Outlook turns positive with increasing vaccination rates and improving mobility," it added.

Its non-performing loan ratio is at 3.1 percent but accompanied by NPL coverage of 101 percent, BDO said.

Gross customer loans grew 5 percent year-on-year while total deposits rose 6 percent, driven by the expansion in current/savings account (CASA) deposits which now comprise 85 percent of total deposits, the bank said. 

The Sy-led lender also said it sustained investments in digital including the launch of its mobile wallet BDO Pay for its clients earlier this year. 

At least 95 percent of its employees are also vaccinated against COVID-19, it said. 

Bangko Sentral ng Pilipinas Governor Benjamin Diokno in September said banks in the country remain "stable" with growing assets but bad loans are expected to remain high. 

The gross NPL ratio was at 4.5 percent as of July but is accompanied by a high NPL coverage ratio of 82.4 percent, BSP data showed. 

President Rodrigo Duterte in February signed the Financial Institutions Strategic Transfer (FIST) law which would cushion banks from bad loans. 

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