BDO Unibank cites preemptive provisions for decline in FY'20 net income

Philippines-based BDO Unibank Inc. logged a 36.2% year-over-year decline in net income for the 2020 full year, citing preemptive provisions of 30.2 billion pesos that it set aside against potential delinquencies from the COVID-19 pandemic.

The bank on Feb. 24 said its full-year 2020 net income fell to 28.2 billion pesos from 44.2 billion pesos in 2019. The S&P Capital IQ consensus estimates for the bank's 2020 normalized and GAAP EPS were 6.19 pesos and 6.24 pesos, respectively.

For the full year, net interest income grew 12% to 133.7 billion pesos, while noninterest income fell 8% to 55.2 billion pesos. Operating expenses dropped 2% year over year to 112.6 billion pesos due to a reduction in marketing and volume-related expenses.

As of Dec. 31, 2020, BDO Unibank's nonperforming loan ratio stood at 2.65%, while its capital adequacy and common equity Tier 1 ratios clocked in at 14.4% and 13.2%, respectively.

As of Feb. 23, US$1 was equivalent to 48.66 Philippine pesos.