BDO Unibank Inc. headed by bankero Nestor Tan expects a slower growth in net income this year after a sharp 51 percent jump in earnings last year amid the impact of the COVID-19 pandemic.
During the bank’s virtual annual meeting, the bankero told the bank’s stockholders that earnings will grow between five and 10 percent this year as improvements in operations continue.
“Outlook for the year remains cautiously optimistic. Business is improving with stronger loan demand and fee income generation. Outlook for asset quality is improving and the macroeconomic environment looks more positive,” Tan said.
After jumping by 51 percent to P42.8 billion in 2021 from P28.2 billion in 2020, the country’s largest bank booked a two-digit growth in profits in the first quarter of the year.
Its net income went up by 13 percent to P11.7 billion from January to March this year compared to P10.4 billion as the momentum in 2021 was carried over to 2022.
“We believe that we are now moving into the post-pandemic environment,” the bankero added.
The BDO president and CEO said headwinds are still present with the ongoing global health crisis as well as Russia’s invasion of Ukraine.
“We are not sure whether we have finally shaken COVID. The elections will clearly bring different expectations and different policies. Businesses have taken a pause before investing. Then on the geopolitical front, the Russia-Ukraine conflict has taken a toll on energy prices, the global supply chain and inflation expectations,” Tan said.
The largest bank owned by the family of the late taipan Henry Sy expects its loan book to expand by eight to 12 percent this year as the economy continues to reopen.