By P.R. Venkat

BDO Unibank Inc.'s nine-month net profit fell 48% as the Philippine lender booked provisions due to the Covid-19 pandemic.

Net profit was 16.6 billion Philippine pesos ($342.91 million), BDO Unibank said Monday.

The bank booked PHP23.8 billion in total provisions in anticipation of potential delinquencies due to the pandemic.

"The delinquency problem on loans have not yet peaked, interest rate caps on credit cards will be instituted soon and there are added costs in doing business as a result of necessary precautions inherent in the bank's operations," the lender said.

Noninterest income was PHP36.8 billion, while net interest income rose 13% to PHP99.8 billion.

"BDO believes that its strong business franchise and robust balance sheet place the bank in a good position to leverage on a post-pandemic economic recovery," it said.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

10-25-20 2134ET