BDO posts P4.3 billion in Net Income due to P22.4 billion in Upfront Provisions
BDO Unibank, Inc. (BDO) recorded P4.3 billion in profits in the IH 2020 vs. P20.1 billion in the comparable period last year, as the Bank booked total provisions of P22.4 billion in anticipation of potential delinquencies due to the Covid 19 pandemic. The provisions are anticipatory in nature, and meant to safeguard the balance sheet. By recognizing the provisions upfront, the Bank can now focus on growing its business as restrictions under ECQ/GCQ are gradually relaxed. Core businesses held up well amid the COVID19 pandemic, with Pre-Provision Operating Income (PPOP) up 17 per cent. Net Interest Income (NII) likewise went up by 17 per cent. Customer loans rose by 1 1 per cent to P2.3 trillion, while total deposits went up by nine (9) per cent to P2.6 trillion, driven by the 19 per cent expansion in Current Account/Savings Account (CASA) deposits which now account for 77 per cent of total deposits. As of end-June 2020 , branch operations have been fully restored from only 45...