BDO Leasing earns P9.5 million in 1Q2021
2021 May – BDO Leasing and Finance, Inc. (BDOLF) posted a net income of P9.5 million in the first three months of 2021, generated solely from investment income following the discontinuance of the Company’s former financing operations and the sale of all its leasing and loan portfolio to the BDO Unibank Group in October 2020.
BDOLF’s investments registered a fair value gain of P13.6 million, while total expenses stood at P4.5 million.
The company’s 1Q21 performance is not comparable to the P83.3 million profit recorded a year-ago, given that last year’s results reflected business operations prior to the full implementation of the Group’s restructuring of its leasing business. The restructuring entailed the full transition of BDOLF operations to BDO Finance Corporation (BDO Finance), established in 2019 to offer customers continued access to lease products and services. BDO Finance likewise assumed the lease transactions booked in BDOLF to ensure continuity to the latter’s existing clients.
It should be noted that BDOLF already ceased to operate as a leasing company and has not accepted any new leasing transaction since October 2020.
Despite the change in direction for the company, BDOLF’s book value per common share for the 1Q21 rose by 5.7 per cent to P2.76 from P2.61 a year-ago.
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