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March 05, 2024

BDO hikes authorized capital to P85B, declares P1 special cash dividend

The stockholders of BDO Unibank Inc. of bankero Nestor Tan has approved the increase in its authorized capital to P85 billion from P55 billion to expand its business, strengthen its franchise, and deliver quality earnings to position the country’s largest lender for long-term sustainable growth.

During their annual meeting Friday afternoon, the shareholders of the Sy-led bank approved the increase in the bank’s authorized capital stock to 8.5 billion common shares with a par value of P10 per share from 5.5 billion.

Shareholders also approved the corresponding amendment to the BDO’s Articles of Incorporation to reflect the increase.

“The hike in BDO’s authorized capital stock provides the Bank flexibility to increase its capital during periods of rapid organic growth or in the event of inorganic opportunities,” the listed bank said.

In the same meeting, BDO stockholders approved the declaration of stock dividends equivalent to 20 percent of the bank’s outstanding capital stock.

The record and payment dates for the stock dividend are still subject to regulatory approvals.

BDO chairperson Tessie Sy also announced that the bank’s Board of Directors approved a P1. special cash dividend on the bank’s common shares.

The record date for the special cash dividend has been set on May 6, 2022 and payment date is on May 31, 2022.

“The special cash and stock dividend declaration is a testament to BDO’s commitment to provide consistent, steady returns and value to its shareholders on the back of the bank’s positive performance in 2021 and 1Q 2022,” the bank said.

BDO reported that its net income surged 51 percent to P42.8 billion in 2021, and by 13 percent to P11.7 billion in the first quarter of the year on the back of the bank’s strong core businesses.