BDO posts P8.8-B net income in Q1, down 10.2%

Sy-led BDO Unibank Inc. saw a 10.2% drop in its bottom line during the first quarter of 2020 resulting from the impact of the Luzon-wide enhanced community quarantine.

BDO said its net income stood at P8.8 billion, lower than P9.8 billion posted in the same period in 2019.

“The core lending and deposit-taking businesses sustained their growth despite the imposition of the Enhanced Community Quarantine (ECQ) in mid-March,” the bank said.

“However, weak capital market conditions impacted on BDO’s investment portfolio and dragged the bottom line,” it added.

Net interest income amounted to P33.0 billion, on stable margins.

Customer loans went up 11% to P2.2 trillion on continued growth across all market segments, though the ECQ had started to disrupt the operations of borrowing clients classified as “non-essential.”

Total deposits grew 9% P2.6 trillion, even with scaled down branch operations in Metro-Manila and Luzon due to transportation and mobility restrictions arising from the ECQ.

Non-interest income amounted to P9.0 billion, largely contributed by fee-based income with P8.1 billion and insurance premiums with P3.9 billion.

“Weak capital market conditions resulted in unrealized mark-to-market (MTM) losses in BDO Life’s equities and unit-linked portfolios, leading to consolidated trading and forex losses,” BDO said.

But the bank also assured the public of its commitment to support its clients and to continue to service their requirements, while implementing measures to safeguard the health and safety of its customers and employees amid the COVID-19 situation and ECQ.   

“BDO believes that its strong business franchise and solid balance sheet make the bank resilient in the face of the ongoing COVID-19 health crisis,” it said. —Ted Cordero/LBG, GMA News