By Ben Otto
BDO Unibank Inc.'s first-half net profit plunged 79% as the Philippine bank booked provisions due to the Covid-19 pandemic.
Net profit was 4.3 billion Philippine pesos ($87.2 million), down from PHP20.1 billion in the same period a year earlier, BDO Unibank said in a stock-exchange filing Monday.
The bank booked PHP22.4 billion in total provisions in anticipation of potential delinquencies due to the pandemic, and said that "by recognizing the provisions up front, the bank can now focus on growing its business" as movement restrictions related to Covid-19 are gradually relaxed.
It added that core business had "held up well" in the period, with pre-provision operating income rising 17% on year.
Noninterest income was PHP24.8 billion, while net interest rose 17% on year, it said.
The lender said its solid balance sheet and sustained business growth would help it weather the coronavirus crisis.
Write to Ben Otto at firstname.lastname@example.org