Finance & Business

BDO Books Pre-emptive Provisioning After Loan Review

BDO Unibank, Inc. (BDO) announced that it has set aside an additional ₱20B in upfront provisions, on top of the P2.1 billion set aside in 1Q20, in anticipation of the expected disruptive economic impact of the COVID-19 pandemic and the Enhanced Community Quarantine (ECQ).

The Bank is expecting delinquencies to increase this year with the disruption in business activities, tightness in corporate liquidity, lower consumption levels, and contraction in GDP by as much as 3.4% based on government estimates. As such, the Bank is allocating a total of 170bps in anticipated credit costs for the effects of the pandemic. While the Bank expects an increase in the NPL ratio, actual write-offs or losses are seen to be much less. Despite the additional provisions, the Bank’s capital adequacy ratio is expected to remain stable and the Bank intends to continue with its regular dividend declaration.

The move, following a comprehensive review of its loan portfolio, is anticipatory in nature and is meant to safeguard the Bank’s balance sheet. The Bank’s current NPL coverage ratio is currently one of the highest in the industry. With these additional provisions, BDO expects that its coverage ratio will remain strong and among the highest in the industry. BDO is working with various borrowing clients to provide continuing support and find ways to navigate through this difficult operating environment. These anticipatory provisions are not expected to have an impact on the Bank’s ability to service clients.

BDO’s balance sheet remains strong, with capital ratios remaining comfortably above regulatory levels despite the higher provisions. The move will not impair the Bank’s capital. Coupled with a robust business franchise and a culture of resilience, the Bank believes it will weather the crisis and be in a good position once the economy bounces back.

18 Comments
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18 Comments

  1. Dhel Manog
    June 10, 2020 at 6:25 pm

    Wow.Good job BDO talagang number 1 Bank kayo ! Malaking tulong ang mga loans ngayong pandemic .

  2. Tel Yamzon
    June 11, 2020 at 12:09 am

    BDO is the best talaga. Kaya laging nasa Top at successful. 😊❤

  3. Catherine Delloro
    June 12, 2020 at 7:07 pm

    BDO is soaring despite with the pandemic now. Mapagbigay kaya pinagpapala talaga 😊

  4. Lea m latagan
    June 12, 2020 at 7:23 pm

    Wow!!😱 Good job👍
    God Bless BDO 👏💙
    More Power🙏

  5. Antoniette Sanchez David
    June 12, 2020 at 7:31 pm

    Wow naman po.. salute talaga ako sa inyo dahil sa mga ginagawa nyo nakakagulat..😯😯😯

  6. Crisanta Alan
    June 12, 2020 at 7:34 pm

    Thank you BDO Unibank! More power💜

  7. Jerusalem
    June 12, 2020 at 7:41 pm

    Thank you BDO UNIBANK, INC. for always finding ways to help … Hoping and praying for the success of your company .

  8. Anarose Lucero
    June 12, 2020 at 7:42 pm

    BDO is really helpful in this time of crisis, very considerate to its clients, that’s why they are the number one trusted bank in the country

  9. Jonna Cielo
    June 12, 2020 at 8:36 pm

    More blessings sainyo sa bumubuo ng BDO 😍👏

  10. Bessie Ramos
    June 12, 2020 at 9:48 pm

    Wow grabe tlga so BDO tumutulong tlga nkktuwa Ang generous 🥰🥰🥰

  11. Ramiella Keira Infante
    June 12, 2020 at 9:52 pm

    Salute to BDO, Thank you.

  12. Jennielyn Narciso
    June 12, 2020 at 10:07 pm

    Goodjob and Godbless BDO🙏♥️😍

  13. Jeanalyn Arador
    June 12, 2020 at 10:22 pm

    This is very important today. Especially for those people who needed it most. Thank you BDO. Salute!

  14. Joy Formentera
    June 13, 2020 at 2:56 am

    Nice BDO this is very a big help in this time of crisis, God bless and more power!

  15. Jojie Viñas
    June 13, 2020 at 6:44 am

    Marami talaga ang natutulungan ng BDO. I hope makabangon na ang lahat sa pandemic na ito.

  16. Mildred Espinosa
    June 13, 2020 at 7:02 am

    BDO talagang maaasahan sa oras na Kelangan..

  17. Graziella Gaylan
    June 13, 2020 at 7:55 pm

    Another great move BDO! Good job!

  18. Graziella Gaylan
    June 13, 2020 at 7:58 pm

    Galing BDO! Another great move! God bless

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