Philippines’ Largest Bank Posts Rare Loss, Braces for Defaults

BDO Unibank Inc., the Philippines’ largest lender by assets, posted its first loss in more than a decade after bolstering provisions for bad loans due to the pandemic, Bloomberg News reported. The bank said its net loss totaled 4.48 billion pesos ($91 million) in the three months ended June, compared with profit of 10.4 billion pesos a year earlier. It booked provisions of 22.4 billion pesos in the first half, in anticipation of potential delinquencies stemming from the coronavirus pandemic. BDO joins Bank of the Philippine Islands in bracing for a wave of soured debts as the country faces its worst economic slump in decades following a lockdown to stem the outbreak. “The provisions are anticipatory in nature, and meant to safeguard the balance sheet,” BDO said in a statement Monday. The gross non-performing loan ratio increased to 1.95%. Read more