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.
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Dhel Manog
June 10, 2020 at 6:25 pmWow.Good job BDO talagang number 1 Bank kayo ! Malaking tulong ang mga loans ngayong pandemic .
Tel Yamzon
June 11, 2020 at 12:09 amBDO is the best talaga. Kaya laging nasa Top at successful. 😊❤
Catherine Delloro
June 12, 2020 at 7:07 pmBDO is soaring despite with the pandemic now. Mapagbigay kaya pinagpapala talaga 😊
Lea m latagan
June 12, 2020 at 7:23 pmWow!!😱 Good job👍
God Bless BDO 👏💙
More Power🙏
Antoniette Sanchez David
June 12, 2020 at 7:31 pmWow naman po.. salute talaga ako sa inyo dahil sa mga ginagawa nyo nakakagulat..😯😯😯
Crisanta Alan
June 12, 2020 at 7:34 pmThank you BDO Unibank! More power💜
Jerusalem
June 12, 2020 at 7:41 pmThank you BDO UNIBANK, INC. for always finding ways to help … Hoping and praying for the success of your company .
Anarose Lucero
June 12, 2020 at 7:42 pmBDO 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
Jonna Cielo
June 12, 2020 at 8:36 pmMore blessings sainyo sa bumubuo ng BDO 😍👏
Bessie Ramos
June 12, 2020 at 9:48 pmWow grabe tlga so BDO tumutulong tlga nkktuwa Ang generous 🥰🥰🥰
Ramiella Keira Infante
June 12, 2020 at 9:52 pmSalute to BDO, Thank you.
Jennielyn Narciso
June 12, 2020 at 10:07 pmGoodjob and Godbless BDO🙏♥️😍
Jeanalyn Arador
June 12, 2020 at 10:22 pmThis is very important today. Especially for those people who needed it most. Thank you BDO. Salute!
Joy Formentera
June 13, 2020 at 2:56 amNice BDO this is very a big help in this time of crisis, God bless and more power!
Jojie Viñas
June 13, 2020 at 6:44 amMarami talaga ang natutulungan ng BDO. I hope makabangon na ang lahat sa pandemic na ito.
Mildred Espinosa
June 13, 2020 at 7:02 amBDO talagang maaasahan sa oras na Kelangan..
Graziella Gaylan
June 13, 2020 at 7:55 pmAnother great move BDO! Good job!
Graziella Gaylan
June 13, 2020 at 7:58 pmGaling BDO! Another great move! God bless