Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home News Macro

Philippines’ Top Bank CEO Warns of Tariff Fallout, Urges Lenders to ‘Expect the Worst’

by Team Lumida
April 25, 2025
in Macro
Reading Time: 5 mins read
A A
0
a flag on a pole

Photo by iSawRed on Unsplash

Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Takeaways:

Powered by lumidawealth.com

  • BDO Unibank Inc., the Philippines’ largest bank by assets, has increased provisions for bad loans, anticipating potential fallout from U.S. tariffs and global economic uncertainty.
  • CEO Nestor Tan cited past Black Swan events, such as the Asian financial crisis, the 2008 global financial crisis, and the 2020 pandemic, as reasons for caution.
  • BDO’s first-quarter net income rose 7% to 19.7 billion pesos ($350 million), but profit growth for 2025 is expected to be slightly below last year’s 12%.
  • The bank is concerned about currency and interest rate volatility stemming from U.S. trade policies, as well as the Philippines’ fiscal and current account deficits.
  • BDO has set aside general provisions equivalent to 2% of its loan book, higher than competitors, to prepare for potential unexpected losses.

What Happened?

BDO Unibank Inc., the Philippines’ largest lender, is bracing for economic turbulence as U.S. tariffs and global trade uncertainties create volatility in currencies and interest rates. CEO Nestor Tan warned that banks should “expect the worst,” citing the increasing frequency of Black Swan events, such as the Asian financial crisis, the 2008 global financial crisis, and the pandemic.

To prepare for potential risks, BDO has increased its provisions for bad loans, setting aside an amount equivalent to 2% of its loan book—higher than its competitors. The bank’s first-quarter net income rose 7% to 19.7 billion pesos, but this fell short of analysts’ expectations due to peso depreciation and margin pressures from lower interest rates.

Tan also expressed concerns about the Philippine government’s ability to respond to economic challenges, given its fiscal and current account deficits.


Why It Matters?

BDO’s cautious stance reflects the broader challenges facing financial institutions in emerging markets as they navigate the ripple effects of U.S. trade policies and global economic uncertainty. The bank’s proactive approach to increasing provisions highlights the importance of risk management in an unpredictable environment.

The warning from the Philippines’ top bank underscores the potential for U.S. tariffs to create widespread economic disruptions, particularly in regions heavily reliant on trade and foreign investment. Currency and interest rate volatility, combined with fiscal constraints, could further strain the ability of governments and businesses to weather economic shocks.

BDO’s performance also serves as a barometer for the Philippine banking sector, with its profit growth and provisioning decisions likely to influence industry trends.


What’s Next?

BDO will continue to monitor global economic developments, particularly U.S. trade policies and their impact on currency and interest rate volatility. The bank’s ability to manage risks and maintain profitability will depend on its proactive measures and adaptability to changing market conditions.

Other banks in the region may follow BDO’s lead in increasing provisions and preparing for potential economic shocks. Meanwhile, the Philippine government’s fiscal and monetary policies will play a critical role in stabilizing the economy and supporting financial institutions.

For now, BDO’s warning serves as a reminder of the importance of vigilance and preparedness in an increasingly uncertain global economic landscape.

Source
Previous Post

Walmart Launches Program to Help Chinese Exporters Sell Domestically Amid Trade War

Next Post

Nvidia Maintains Distance from Crypto, Halts Arbitrum Partnership Announcement

Recommended For You

Trump–Xi Truce Trades Rare-Earth Relief for Concessions, Easing Supply-Risk for U.S. Industry

by Team Lumida
6 hours ago
Trump–Xi Truce Trades Rare-Earth Relief for Concessions, Easing Supply-Risk for U.S. Industry

Key Takeaways Powered by lumidawealth.com Trump says Beijing will ease rare-earth export controls, removing a major supply chokepoint for EVs, wind, and defense. Concessions appear reciprocal: tariff relief and...

Read more

Fed to Cut Bank Supervision Staff by 30%, Signaling Softer Oversight

by Team Lumida
6 hours ago
Market Watch: Fed Holds Rates, Hints at September Cut”

Key Takeaways Powered by lumidawealth.com Headcount in Supervision & Regulation to drop from ~500 to ~350 by end-2026 via attrition and voluntary separations. Vice Chair for Supervision Michelle Bowman...

Read more

China’s PMI Slips to 49.0: Manufacturing Contraction Deepens Despite Services Stabilizing

by Team Lumida
6 hours ago
China’s Bold Economic Moves: What You Need to Know Now

Key Takeaways Powered by lumidawealth.com Official manufacturing PMI fell to 49.0 in October (Sep: 49.8), seventh straight month below 50. Export orders dropped to 45.9; production slid to 49.7;...

Read more

Trump Leans on Foreign Policy Wins as Domestic Pressures Mount

by Team Lumida
6 hours ago
Trump Tariffs Leave Key Questions on China Supply Chain Rules Unanswered

Key Takeaways Powered by lumidawealth.com Six-day Asia trip yielded trade pledges and investment MOUs; White House touts up to $2T in prospective commitments. Immediate U.S. backdrop: month-long government shutdown,...

Read more

Trump Cuts China Tariffs to Spur Fentanyl Crackdown and Trade De-escalation

by Team Lumida
1 day ago
Trump Announces 25% Tariffs on Mexico and Canada, Targeting Border Security and Trade

Key Takeaways Powered by lumidawealth.com U.S. lowers select China tariffs tied to fentanyl to 10% from 20%, nudging average tariffs on most Chinese imports to ~45% from ~55%. China...

Read more

Fed Seen Cutting Rates, But With No Added Signal

by Team Lumida
2 days ago
Why Mortgage Servicers Are Thriving Amid High Rates

Key Takeaways Fed expected to cut rates 25 bps Wednesday (2 p.m. decision, Powell presser 30 min later); Chair Powell likely to offer little guidance as growing divide...

Read more

After Demolishing the U.S.-China Relationship, Trump Is Rebuilding It His Way

by Team Lumida
2 days ago
Trump Tariffs Leave Key Questions on China Supply Chain Rules Unanswered

Key Takeaways Powered by lumidawealth.com U.S.-China trade negotiators reached framework agreement in Kuala Lumpur Sunday, setting stage for Trump-Xi deal Thursday in South Korea; transactional truce involves China resuming...

Read more

Trump Hails Golden Era in Japan Relations

by Team Lumida
2 days ago
Why Berkshire’s Latest Yen Bond Sale Could Ignite the Japanese Market

Key Takeaways Powered by lumidawealth.com Trump and new PM Takaichi pledged "golden age" of U.S.-Japan cooperation aboard USS George Washington; Takaichi vowed to boost defense spending to 2% of...

Read more

Rare Earths Producers Look to US-Led Boom to Blunt China’s Power

by Team Lumida
3 days ago
Rare Earths Producers Look to US-Led Boom to Blunt China’s Power

Key Takeaways Powered by lumidawealth.com US rare-earth magnet producers (Noveon, MP Materials) see surging demand after China's April export curbs; Adamas says US capacity could offset imports by 2028...

Read more

China Analysts Expect US to Ease Export Curbs for Magnet Relief

by Team Lumida
3 days ago
China’s Financial Overhaul: Xi’s Strategy to Rebalance $9.1 Trillion Debt Crisis

Key Takeaways Powered by lumidawealth.com Chinese analysts expect US to dial back Sept. 29 "affiliates rule" (restricting chip sales to subsidiaries of blacklisted Chinese firms like Huawei) in exchange...

Read more
Next Post
Nvidia CEO Reveals Secrets Behind AI Domination Amidst Fierce Competition

Nvidia Maintains Distance from Crypto, Halts Arbitrum Partnership Announcement

Crypto to Stocks: The New Investment Shift in China

China Reaffirms 2025 Growth Target Amid Trade Tensions and Global Uncertainty

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Why Ignoring the U.S. Budget Gap Could Cost You Big

Job Market Warning Signs: US Unemployment Claims Hit Two-Month Peak

December 12, 2024
Adobe’s AI Challenges: Stock Drops on Weak 2024 Outlook

Adobe Raises Fiscal 2025 Outlook as AI Tools Like Firefly Drive Growth

June 13, 2025
Oil Prices and Fed Decisions: A Volatile Week Ahead

Oil Prices and Fed Decisions: A Volatile Week Ahead

October 10, 2024

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018