MANILA, Philippines - BDO Leasing and Finance Inc. said its net income fell by 32 percent to P185.5 million in nine months this year, from P276 million in 2008, as total expenses expanded mainly due to depreciation of its assets.
However, the company said it registered a 72-percent increase in gross from P906.6 million last year to P1.556 billion.
It attributed the growth in gross income to the dramatic expansion of its rental income and gains in while other income sources recorded positive gains.
“Rental income generated by subsidiary BDO Rental Inc. went up to P831.4 million in 2009, compared to P75 million last year, and interest on factored receivable aggregated P71 million as of 2009 against P44.5 million in 2008 or an increment of P26.5 million,” BDO Leasing and Finance, a subsidiary of Banco de Oro Unibank Inc. (BDO), reported.
Other income increased to P73.2 million mainly due to the gain in disposal of leased assets and recovery of charged off accounts.
Total expenses increased from P509.2 million to P1.278 billion in 2009, due principally to depreciation on leased assets, which reached P761.8 million compared to P29.9 million booked in 2008. Compensation and fringe benefits aggregated to P92.9 million or an increase of P14.8 million, due to salary adjustments and increase in total number of manpower complement.
Likewise, the increase in interest and financing charges represents interest on guaranty deposits, which went up by P14.5 million or from P40.6 million in 2008 to P55.1 million in 2009.
The BDO unit likewise reported total loan portfolio stood at P9.368 billion end September 2009 while total assets at P10.7 billion.
Loans and receivables finances worth P4.037 billion posted an increase over the previous year’s P3.764 billion. Property, plant and equipment amounted to P1.715 billion up from P562 million last year.
“This is mainly due to leased assets of BDO Rental, where the increment in investment properties grew by P19.5 million, from P732.7 million in 2008 to P752.2 million in 2009, attributed to assets acquired due to foreclosure,” it reported. — Ted P. Torres