MANILA - BDO Unibank said on Monday it posted P12.3 billion in net income in the third quarter despite the continuing impact of the pandemic.

The Philippines’ largest lender said this brought its earnings for the first 9 months of the year to P16.6 billion, down 48 percent from the same period last year due to the provisions made for potential bad loans caused by the pandemic.

Despite the rebound in the third quarter, BDO said problems due to the pandemic still lay 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,” the bank said.

BDO said all of these and more are seen to put pressure on its earnings.

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Loans during the period grew at a “more tempered” 6 percent to P2.2 trillion, driven by corporate and consumer accounts, said BDO. Operating expenses meanwhile declined by 3 percent on lower volume-related expenses.

“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.”

BDO said its gross non-performing loans ratio was 1.97 percent, while its capital adequacy ratio was at 14.3 percent “remaining well above regulatory minimum.”

The bank said it was in a good position to leverage on a post-pandemic economic recovery.