At its Board meeting held on March 26, 2022, the Board of Directors of BDO Unibank, Inc. (BDO) approved the declaration of stock dividends equivalent to 20% of the Bank’s outstanding capital stock, as well as an increase in its authorized capital stock (common shares) from 5,500,000,000 to 8,500,000,000 shares, and the amendment to the Bank’s Articles of Incorporation to reflect the increase. These will be presented and endorsed for approval to stockholders at the Bank’s Annual Shareholders’ Meeting to be held virtually on April 22, 2022.
The stock dividend declaration is a testament to BDO’s commitment to continue investing in the business and provide consistent, steady returns and value to its shareholders. Shareholders will gain additional shares which they can keep for the long haul and grow in value, or in case they need liquidity, sell through the stock market at their discretion. The additional shares from the stock dividends will also be eligible for future cash dividends which the Bank regularly declares. Record and payment dates of the stock dividends shall be fixed and disclosed after approval by the Bangko Sentral ng Pilipinas, within the periods provided by law.
Meanwhile, the increase in the Bank’s authorized capital stock provides the Bank flexibility to increase its capital during periods of rapid organic growth or in the event of inorganic opportunities. This will allow BDO to continue to expand its business, strengthen its franchise, and deliver quality earnings to position the Bank for long-term sustainable growth.
The Bank’s ability to expand its business is dependent on business conditions and the Bank’s financial position.