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| BDO Leasing posts P81 million Profit in 1H 2020 |
Gross revenues totaled P1.3 billion, as lease and loan receivables declined by 23 percent, partly due to the sale of a portion of the Company’s lower yielding portfolio to mitigate the impact of margin compression, and partly to the implementation of IFRS 16 which required leases to be booked on-balance sheet, thus diminishing their attractiveness to corporate borrowers.
Meanwhile, total expenses fell by 25 percent to P1.2 billion, on reduced borrowings and lower interest and financing charges, which were down 53 percent, given the decline in interest rates.
Earlier this year, BDO Leasing’s Parent Company, BDO Unibank, Inc. (BDO) announced that it entered into an agreement to sell a controlling stake in BDO Leasing to a third party as part of the Bank’s restructuring of its leasing business. The sale transaction is subject to closing conditions and approval by regulatory authorities.
BDO Leasing ends 1Q 2020 with P83 million Profit
BDO Leasing and Finance, Inc. (BDO Leasing) recorded a net income of P83 million in 1Q 2020 vs. the P24 million loss in the comparative period last year. The results reflect successful measures undertaken to address margin compression, which dragged down its financial results in 2019.
For the 1Q 2020, gross revenues amounted to P696 million, while total expenses dropped by 30 percent to P569 million, largely due to the 52 percent drop in interest and financing charges as funding costs normalized.
Earlier this year, BDO Leasing’s Parent Company, BDO Unibank, Inc. (BDO), announced that it entered into an agreement to sell a controlling stake in BDO Leasing to a third party as part of the Bank’s restructuring of its leasing business. The sale transaction is subject to closing conditions and approval by regulatory authorities.