BDO Leasing reversed to net profit of P83m in first quarter

BDO Leasing and Finance Inc., the leasing unit of BDO Unibank Inc., recorded a net income of P83 million in the first quarter of 2020, a reversal from a P24-million loss year-on-year.

BDO Leasing attributed the turnaround to successful measures it undertook to address margin compression that dragged down financial results in 2019.

Gross revenues in the first three months amounted to P696 million, while total expenses dropped 30 per cent to P569 million, largely due to the 52-percent decline in interest and financing charges as funding costs normalized.

Earlier this year, BDO Leasing’s parent announced it signed an agreement to sell a controlling stake in BDO Leasing to a third party as part of the bank’s bid to restructure the leasing business.

The sale transaction is subject to closing conditions and approval of regulatory authorities.

BDO Leasing is the leasing and financing entity of BDO Unibank, which provides customers with direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring.

It also provides operating leases through wholly-owned subsidiary BDO Rental Inc.

BDO Leasing and Finance is among the industry’s dominant players in terms of total assets, capitalization and profitability.