MANILA, Philippines - BDO Leasing and Finance Inc., a unit of BDO Unibank Inc. recorded a 2.4 percent growth in earnings on the back of a double-digit growth in its loan and lease portfolio.
BDO Leasing said in a statement its net income amounted to P387 million from January to September, P9 million higher compared to P378 million in the same period last year.
The company reported its loan and lease portfolio grew P26.4 billion in the first nine months.
During the nine-month period, the BDO unit registered a 12 percent growth in revenues to P1.9 billion.
“The company will continue to direct its marketing efforts on growth areas and key provinces, while leveraging on its parent company’s broad market reach to keep its position among the industry’s leading players,” it said in a statement.
BDO Leasing provides its customers direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring.
It likewise provides operating leases through its wholly owned subsidiary BDO Rental Inc.
BDO Unibank earlier reported a 5.4 percent increase in profits to P17.6 billion in the first nine months from P16.7 billion in the same period last year amid the challenging operating environment brought about by uncertainties from the impending interest rate lift-off in the US and the economic slowdown in China.
The bank attributed the increase to the solid expansion of its core businesses despite the challenging operating environment. Its lending operations picked up pace with a 19 percent increase in gross customer loans to P1.2 trillion on sustained growth across its target markets.
BDO’s total deposits rose 12 percent to P1.6 trillion on the back of the 16 percent hike in low-cost deposits. This translated to a 12 percent increase in net interest income to P41.8 billion in the first nine months.
On the other hand, fee-based service income contributed P13.9 billion to non-interest income followed by trading and foreign exchange income at P6.3 billion.
Overall, the BDO’s gross operating income went up by 11 percent to P65.6 billion in the first nine months of the year.
BDO has more than 1,000 operating branches and over 3,000 ATMs nationwide. It has an overseas branch in Hong Kong as well as 27 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.