BDO ADDS P20 BILLION IN LOAN LOSS PROVISION
BDO Unibank today added another P20 billion in loan loss provision in what it said was a preemptive move following the expected souring of loans due to the Covid 19 pandemic.
The huge “pre-emptive provisioning” followed a review of its loan portfolio, the bank disclosed to the Philippine Stock Exchange (PSE) where it also announced a 30 centavo cash dividend for the second quarter to stockholders of record as of Jun 17 to be paid June 29.
According to the disclosure, the additional P20 billion is on top of what it had set aside as provisions for loan losses of P2.3 billion following the first-quarter results where it booked earnings of P8.8 billion, lower by 10.2 percent from its year ago level due to scarred financial conditions with the virulent Covid 19 pandemic.
As of the end of the first quarter, the BDO is the biggest bank in terms of assets, capital, deposits and loans and enjoys a higher capital adequacy ratio and with an NPL coverage ratio of more than 151.4 percent
BDO has a loan portfolio of P2.2 trillion and among the biggest borrowers include Davao based businessman Dennis Uy who went on an acquisition binge ranging from food chains to the Malampaya gas deposit.
The bank said it is expecting delinquencies to increase this year with the disruption in business activities, tightness in corporate liquidity and lower consumption levels but that its balance sheet remains sound. #COVID19