BDO Earns P44.2 Bn In 2019, P8.8 Bn In 1Q 2020
In the Bank’s Virtual Annual Stockholders’ Meeting held today, BDO Unibank, Inc. (BDO) President and Chief Executive Officer Nestor V. Tanreported the Bank’s full year 2019 and first quarter 2020 results at P44.2 billion and P8.8 billion, respectively, on the back of strong core income sources.
Mr. Tan likewise cited adjustments to the Bank’s operations and implementation of safety measures, as well as preemptive provisioning to safeguard the balance sheet amid the COVID-19 pandemic and the Enhanced Community Quarantine (ECQ).
The Bank supported and serviced clients’ requirements during the ECQ despite scaled down branch operations, with skeletal crews running head office units to support branches, as well as cash, loans and payment activities, among others. Enhanced health, safety and security measures have also been undertaken to ensure the well-being of BDO employees and clients.
As a prudent measure amid the challenging environment, the Bank has set aside P20 billion in additional provisions after a comprehensive review of the loan portfolio.
Mr. Tan clarifies, “This move is anticipatory in nature. We are not yet experiencing losses. The additional provisions are meant to safeguard our balance sheet and will not impair our capital which is strong enough to withstand near-term shocks.”
Mr. Tan also stated that the Bank’s capital position remains strong despite the additional provisions, and that BDO intends to continue with its regular quarterly dividends. The Bank had earlier paid out P0.30 per share cash dividend on common shares for 1Q 2020 and declared the same for 2Q 2020 payable on June 29, 2020 to all stockholders of record as of June 17, 2020.
Mr. Tan extended his gratitude to BDO customers and stakeholders for their unwavering support especially in this time of COVID-19. Their invaluable trust, combined with the Bank’s solid balance sheet, strong business franchise, and diligent team effort will allow the Bank to weather the crisis anyplace it well-positioned once the economy bounces back.