{"id":258247,"date":"2020-06-17T00:07:02","date_gmt":"2020-06-17T04:07:02","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=258247"},"modified":"2020-06-17T00:07:02","modified_gmt":"2020-06-17T04:07:02","slug":"bdo-increases-provisioning-due-to-pandemic-posts-lower-q1-income","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2020\/06\/17\/bdo-increases-provisioning-due-to-pandemic-posts-lower-q1-income\/","title":{"rendered":"BDO increases provisioning due to pandemic, posts lower Q1 income"},"content":{"rendered":"
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In the first quarter of the year, BDO registered a PHP8.8 billion net income, 10 percent lower than the PHP9.8 billion print they registered in the same period last year. (File Photo by Hans Olav Lien\/Wikimedia Commons, CC BY-SA 3.0<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0\u2013 The Sy-led BDO Unibank has increased its provisioning for this year in anticipation of higher credit costs vis-\u00e0-vis the impact of the pandemic on their operations.<\/p>\n

BDO president and chief executive officer Nestor V. Tan, during the bank\u2019s virtual annual stockholders meeting on Tuesday, said they increased the PHP2.3 billion provisioning set aside in the first quarter of this year by PHP20 billion to bring the total to PHP22.3 billion.<\/p>\n

\u201cWith these provisions, together with our excess provisions that we have already booked, we are already allocating a total of 170 basis points in anticipated credit cost for the effects of the pandemic,\u201d he said.<\/p>\n

Tan said the amount they set aside for provisioning \u201cis a conservative estimate of probable losses as a result of a comprehensive review of our portfolio.\u201d<\/p>\n

\u201cIt is anticipatory in nature. We are not yet experiencing losses,\u201d he said, noting that \u201cthe bank\u2019s capital will not be impaired and that the bank\u2019s capital adequacy ratio is expected to remain stable.\u201d<\/p>\n

In the first quarter of the year, BDO registered a PHP8.8 billion net income, 10 percent lower than the PHP9.8 billion print they registered in the same period last year.<\/p>\n

\u201cCapital market conditions impact investment portfolio and drag the bottom line,\u201d Tan said, citing the impact of the Taal Volcano eruption, the coronavirus disease 2019 (Covid-19) health crisis, and the enhanced community quarantine (ECQ) implemented in mainland Luzon since mid-March until mid-May and extended until May 30 for Metro Manila to address the rise in the number of infections.<\/p>\n

Tan said 2020 is going to be a challenging year as the economy is expected to post a contraction due in part to the measures being implemented to address the pandemic.<\/p>\n

He said loan growth is expected to be lower this year because of the difficult operating environment.<\/p>\n

\u201cAmong the emerging risks is the potential impact on asset quality. We anticipate an increase in loan defaults due to the economic fallout from ECQ,\u201d Tan said.<\/p>\n

He, however, said the government\u2019s stimulus package is seen to counter the economic effects of the programs to address Covid-19.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0\u2013 The Sy-led BDO Unibank has increased its provisioning for this year in anticipation of higher credit costs vis-\u00e0-vis the …<\/p>\n","protected":false},"author":44,"featured_media":127889,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-258247","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/258247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=258247"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/258247\/revisions"}],"predecessor-version":[{"id":258248,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/258247\/revisions\/258248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/127889"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=258247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=258247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=258247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}