MANILA, Philippines—The country’s largest lender, BDO Unibank, saw a 36.2 percent drop in net profit last year to P28.2 billion on larger provisions for probable loan losses set aside during the challenging macroeconomic environment caused by the COVID-19 pandemic.
BDO set side loan loss provisions of P30.2 billion for 2020, much larger than the P6.2 billion buffer booked in 2019. The bank said this was in line with “prudent credit and provisioning policies, meant to further strengthen its balance sheet.”
The bank’s net interest income grew by 12 percent to P133.7 billion, supported by a modest growth in the loan book.
Loans managed to grow by 3 percent to P2.3 trillion, drive…
Keep on reading: BDO sees drop in net profit resulting from higher loan loss provision