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BDO Unibank, Inc. (BDO) recorded P4.3 billion in profits in the 1H 2020 vs. 920.1 billion in the comparable period last year, as the Bank booked total provisions of P22.4 billion in anticipation of potential delinquencies due to the Covid 19 pandemic. The provisions are anticipatory in nature, and meant to safeguard the balance sheet. By recognizing the provisions upfront, the Bank can now focus on growing its business as restrictions under ECQ/GCQ are gradually relaxed. Core businesses held up well amid the COVID- 19 pandemic, with Pre-Provision Operating Income (PPOP) up 17 percent. 

Net Interest Income (NII) likewise went up by 17 per cent. Customer loans rose by 11 per cent to P2.3 trillion, while total deposits went up by nine (9) per cent to P2.6 trillion, driven by the 19 per cent expansion in Current Account/Savings Account (CASA) deposits which now account for 77 per cent of total deposits. As of end-June 2020, branch operations have been fully restored from only 45 per cent at the start of the ECQ in mid-March 2020. Non-interest income settled at P24.8 billion, led by fee-based income with P13.4 billion and insurance premiums with 97.0 billion. 

Operating expenses dipped by one (1) per cent to P56.0 billion on lower volume-related expenses, and despite the additional costs and operational adjustments to adapt to the "new normal” to ensure the security, health, and safety of BDO employees and clients. 

Gross non-performing loan (NPL) ratio increased to .95 per cent while NPL cover settled at 139.4 percent. 

Total capital base settled at P367. 5 billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 (CET1) ratio at 13.8 per cent and 12.7 per cent, respecti\/eIy, despite the upfront provisions. These ratios are well abo\ie regulatory minimum and deemed sufficient to support the Bank’s anticipated asset growth as well as regular quarterly dividends. 

Going forward, BDO believes that its solid balance sheet, sustained business groMh, and dedicated team effort will allow the Bank to weather the COVID-19 crisis and sustain its long-term performance post-pandemic.