Should I Start Pulling My Money Out Of Bdo?

[jackbrng]

nye, BDO pa!

 

after all these year na naging aggressive sila sa pag-acquire ng mga banks para maging no. 2 sila, i don't think this crisis will cause them to run, hehehe,

[HOT PAPA]

one week have passed, parang walang katinag-tinag, guess matibay talaga.......

[graphik]

easy lang .... just dont panik, matatag si tatang

[denimhead]

warren buffett just put in 5bill on lehman's .. that should account for something

[kanguso]

don't panic people

 

Pag nag withdraw mga depositors bcoz of fear dun lalong mayayari ang mga banks. Yung sa lehman naman i think they have reserves to compensate for the loss.

[Bitoy]

I just opened a BDO account today. Their Lehman exposure is not that significant to bring them down. A BDO banker also told me that they have released some extra income to cover for their Lehman exposure.

 

Don't panic as it will just make matters worse.

[litobuddy]

I just opened a BDO account today. Their Lehman exposure is not that significant to bring them down. A BDO banker also told me that they have released some extra income to cover for their Lehman exposure.

 

Don't panic as it will just make matters worse.

 

you're the man

[hugoboss28]

I just opened a BDO account today. Their Lehman exposure is not that significant to bring them down. A BDO banker also told me that they have released some extra income to cover for their Lehman exposure.

 

Don't panic as it will just make matters worse.

 

 

Thousands of investors did not panic, and they get heavily hit.

Be steadfast and update your knowledge about the bank's liquidity.

Off course the BDO guy will give you positive feedbacks, but is he truly aware of what's happening?

 

Just a thought to share......

Edited October 26, 2008 by hugoboss28

[teban]

ang pagkakabasa ko nito sa balita lugi na daw sila nyan ang previous gain ata nila is 4 billion something now its only down to 1 billion coz of the market crunch. pero still hehehe

[rapturousone]

ang pagkakabasa ko nito sa balita lugi na daw sila nyan ang previous gain ata nila is 4 billion something now its only down to 1 billion coz of the market crunch. pero still hehehe

 

Banco de Oro reported a net profit of Php1.06B for the first 9 months of the year (down 78% year-on-year) implying a loss of Php1.3B for 3Q alone as a result of provisions made in 3Q for its exposure to Lehman via credit linked notes.

 

Earlier, BDO disclosed that it had made Php3.8B worth of provisions against their USD130M exposure. The provision partially came from re-allocation of excess reserves, and the balance charged through the P&L.

 

Outside of trading losses and resulting provisions, BDO's underlying businesss seems alright. Loan growth was at 35% (vs the banking industry's 22% growth) funded by a similar 32% increase in deposits. Despite the losses, BDO reported total Capital Adequacy Ratio of 13.7%, comfortably above the 10% minimum.

 

But again....who knows what else is lurking out there.

[Dr_PepPeR]

Banco de Oro reported a net profit of Php1.06B for the first 9 months of the year (down 78% year-on-year) implying a loss of Php1.3B for 3Q alone as a result of provisions made in 3Q for its exposure to Lehman via credit linked notes.

 

Earlier, BDO disclosed that it had made Php3.8B worth of provisions against their USD130M exposure. The provision partially came from re-allocation of excess reserves, and the balance charged through the P&L.

 

Outside of trading losses and resulting provisions, BDO's underlying businesss seems alright. Loan growth was at 35% (vs the banking industry's 22% growth) funded by a similar 32% increase in deposits. Despite the losses, BDO reported total Capital Adequacy Ratio of 13.7%, comfortably above the 10% minimum.

 

But again....who knows what else is lurking out there.

 

Indeed who knows what evil lurks in the hearts of men. Many banks will be taking quite a hit on the mark to market valuation of their securities.

[rapturousone]

Indeed who knows what evil lurks in the hearts of men. Many banks will be taking quite a hit on the mark to market valuation of their securities.

 

Absolutely.

 

Last week, the BSP issued Circular 628, amending Circular 626, which allowed banks to reclassify accounts from AFS into HTM. The key changes brought about by the Circular are:

a) the deadline was moved from 01 Nov to 15 Nov; and

banks can now choose any date from 01 July to 14 Nov when pricing the assets they choose to reclassify (in the previous circular, banks had to use 01 July as repricing date); provided that all assets that a bank chooses to reclassify must be priced at the same date.

 

Note that the rules include CLNs.

 

This means that any mark-to-market loss recorded in 3Q08 could be reversed depending on how much each bank chooses to reclassify. Given the movements of bond yields, it would make most sense for banks to price their assets to mid-September 08, just before Lehman went bust.

 

BDO would be a good example, having booked a 3Q08 loss of Php1.3B, primarily on MTM losses including its CLNs.

 

So much for limiting the risk of moral hazard.

 

Knowing the foregoing, should you pull out your money from BDO?

[Dr_PepPeR]

Absolutely.

 

Last week, the BSP issued Circular 628, amending Circular 626, which allowed banks to reclassify accounts from AFS into HTM. The key changes brought about by the Circular are:

a) the deadline was moved from 01 Nov to 15 Nov; and

banks can now choose any date from 01 July to 14 Nov when pricing the assets they choose to reclassify (in the previous circular, banks had to use 01 July as repricing date); provided that all assets that a bank chooses to reclassify must be priced at the same date.

 

Note that the rules include CLNs.

 

This means that any mark-to-market loss recorded in 3Q08 could be reversed depending on how much each bank chooses to reclassify. Given the movements of bond yields, it would make most sense for banks to price their assets to mid-September 08, just before Lehman went bust.

 

BDO would be a good example, having booked a 3Q08 loss of Php1.3B, primarily on MTM losses including its CLNs.

 

So much for limiting the risk of moral hazard.

 

Knowing the foregoing, should you pull out your money from BDO?

 

Really? Haven't seen this circular yet. I wonder if this will also apply to UITFs? Fortunately or unfortunately I have no money in BDO. I have no money anywhere.

[sweet06]

ask ko lang..yung account ko before ay sa equitable and now nalipat na sa BDO..gusto ko lang malaman kung okay lang ba kung hindi nakakapagdeposit ng more than 6months na?or mababawasan dahil may fee sila kapag hindi ka na nakakapagdeposit ng matagal..

 

thanks in advance

[rapturousone]

ask ko lang..yung account ko before ay sa equitable and now nalipat na sa BDO..gusto ko lang malaman kung okay lang ba kung hindi nakakapagdeposit ng more than 6months na?or mababawasan dahil may fee sila kapag hindi ka na nakakapagdeposit ng matagal..

 

thanks in advance

 

kadalasan, hindi nagkakaltas ng fee ang bangko basta hindi bumababa ang deposito ng kliyente sa tinatawag na "minimum maintaining balance". maigi na ikunsulta mo ito sa iyong branch manager para makasigurado ka. dapat mo rin alamin kung mayroong patakaran ang bangko mo tungkol sa "dormant account".