July 19, 2018, 4:08 am
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BDO Leasing earns P282M

BDO Leasing and Finance, Inc. (BDO Leasing) posted a net income of P282 million in the first six months of 2017, a steady performance compared to year-ago. 

Total assets grew by 16 percent to P42 billion, driven by the 16 percent growth in gross loan and lease portfolio to P33 billion. While gross revenues went up by eight percent to P1.5 billion, competitive pressures affected margins and tempered bottomline performance.

The company was granted authority by the Securities and Exchange Commission (SEC) to issue P25 billion STCPs (Short-Term Commercial Papers). 

This funding program will allow BDO Leasing to tap more businesses inprovincial growth areas as well as support the financing and leasing requirements of local industries in its target markets.

BDO Leasing and Finance Inc. is the leasing and financing subsidiaryof BDO Unibank, Inc. (BDO) which provides its customers direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring. 

It also provides operating leases through its wholly owned subsidiary BDO Rental Incorporated. 

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

Parent firm, BDO, posted P13.3 billion in net income in the first six months of 2017, primarily driven by an expansion in loan portfolio, growth in low-cost deposits and higher recurring fee-based service income.

Excluding the extraordinary items from the consolidation of newly acquired subsidiary BDO Life last year, this represents a strong16 percent growth in core earnings.

The bank’s core businesses delivered solid numbers, with customer loans increasing by 17 percent to P1.6 trillion while total deposits rose to almost P2.0 trillion, supported by the 17 percent jump in low-cost CASA deposits, now comprising 73 percent of total deposits.  

As a result, net interest income went up by 22 percent to P38.6 billion.

Meanwhile, non-interest income amounted to P23.2 billion driven by fee-based service income. 

On a comparable basis, fee-based income rose by 13 percent. Insurance premiums advanced by 17 percent to P4.6 billion, while Trading and forex gains declined 21 percent to  P2.6 billion from P3.2 billion a year-ago.

Operating expenses increased by 20 percent on the bank’s aggressive drive to grow its core business along with investments in new markets.

Following a successful  P60 billion ($1.2 billion)stock rights offer in January 2017 and retained earnings from profitable operations, the bank’s capital base expanded to  P289billion, with Capital Adequacy Ratio (CAR) and Common Equity Tier 1 Ratio at 15.7 percent and 14.0 percent, respectively. 
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