BDO Leasing returns to profit

BDO Leasing and Finance Inc. said Thursday it posted a net income of P135 million in the first nine months, a reversal of the P39-million net loss it incurred a year ago.

BDO Leasing said in a statement expenses declined 18 percent in the nine-month period to P1.9 billion, on reduced borrowings and lower funding costs, with interest and financing charges dropping by 55 percent given the low interest rate environment.

Gross revenues fell by 5 percent to P2.1 billion, on lower interest income following the sale of BDO Leasing’s assets, covering lease receivables and other assets, to the BDO Unibank Group as part of the restructuring of the group’s leasing business.

BDO Unibank earlier disclosed that it was selling its controlling stake in BDO Leasing to a third party. The transaction is still subject to regulatory approval and the fulfillment of closing conditions.

BDO sold its controlling stake in BDO Leasing, but would continue to provide leasing and finance products to clients through wholly-owned, privately-held subsidiary BDO Finance Corp.