BDO Leasing and Finance, Inc. (BDO Leasing) recorded P135 million in net income for the first nine months of 2020, reversing the P39 million loss in the comparative period last year largely due to lower interest and financing charges.
Total expenses declined by 18 per cent to P1.9 billion, on reduced borrowings and lower funding costs, with interest and financing charges dropping by 55 per cent given the low interest rate environment.
Meanwhile, gross revenues fell by five (5) per cent to P2.1 billion on lower interest income following the sale of BDOLF’s assets, covering lease receivables and other assets, to the BDO Unibank Group as part of the restructuring of the Group’s leasing business.
Earlier this year, BDO Unibank disclosed that it was selling its controlling stake in BDOLF to a third party. The transaction is still subject to regulatory approvals and the fulfillment of closing conditions.
While BDO has sold its controlling stake in BDOLF, it will continue to provide leasing and finance products to its clients through its wholly-owned, privately-held subsidiary, BDO Finance Corp. (BFC).