BDO Leasing earnings down slightly in 2009

MANILA, Philippines - BDO Leasing and Finance Inc., a wholly-owned subsidiary of Banco De Oro Unibank Inc., said its net income fell slightly to P300 million last year from the previous year’s P366 million due to cost adjustments and lower margins.

In a report to the Philippine Stock Exchange, BDO Leasing said the lower income was a result of the impact of adjustments in recognition of depreciation expense and more conservative provisioning policies.

It added that net margin was also lower due to a shift in product and customer focus as well as keener competition for market share.

“Without these adjustments, net income in 2009 would have been at par with that of 2008,“ company president Roberto Lapid said.

However, BDO Leasing’s revenues surged 61.4 percvent to P2.21 billion, from P1.37 billion in 2008, on the back of a strong operating lease income, which rose to 57 percent of total financing income in 2009 from just 20 percent in 2008.

BDO Leasing aligned last year its customer and product priorities with the demand, utilizing its strong market presence on corporate clients and shifting its product focus on operating leases, Lapid said.

Thus, total assets as of end-2009 rose 25 percent to P13.05 billion from P10.41 billion the year before due to heightened marketing efforts, with bulk of growth representing the increase in net loans.

BDO Leasing likewise secured an approval from corporate regulators last year to issue up to P8 billion worth of short-term commercial papers (STCP), which garnered a high rating from PhilRatings. 

BDO Leasing leases equipment and properties to commercial clients. It also extends commercial and consumer loans for the purchase of automobiles, office equipment, machinery, real property and financial assets. – Ted Torres