Toyota Financial Services Philippines Corp. (TFSPH) has been granted a quasi-banking license by the Bangko Sentral ng Pilipinas (BSP), allowing it to borrow funds from the public for relending or purchasing of receivables.
TFSPH president Dexter Pasion said the license will allow them to participate in the development of the country’s capital market.
“We can thus ensure support to Toyota car owners, future owners and Toyota dealers,” he said. “Toyota will continue to show its respect and commitment in the development of the capital market.”
The financing company has boosted its total resources to P8.7 billion as of end-June this year, from just P1.2 billion in 2003. It has been recognized by the Securities and Exchange Commission (SEC) as the second largest financing company in the country.
TFSPH is 60 percent-owned by Toyota Financial Services Corp. (TFSC), a leading financial services group based in Japan and wholly-owned by Toyota Motor Corp. The Metrobank Group holds the remaining 40 percent, with the Philippine Savings Bank owing 25 percent and Metropolitan Bank & Trust Co. holding 15 percent.
TFSPH recorded revenues of P865.51 million and a net income of P68.7 million in 2006. It now services over 17,000 customers, from only 5,400 in 2005.
Recently, the company increased its capital base by another P500 million.
The Toyota financing arm recorded financing sales growth of 65 percent, outpacing the entire industry which recorded growth of almost 20 percent.
TFSC president Hideto Ozaki said their Philippine subsidiary has turned into one of its leading units, which totals nine in the region.
TFSC has total assets of $95 billion and an operating income of $1.3 billion as of March 2006.
“With an improving Philippine economy, we foresee greater demand for Toyota cars and are prepared for the opportunity to service an even broader market,” Ozaki added.