BDO Leasing forecasts 5% profit hike

MANILA, Philippines - BDO Leasing and Finance Inc., a subsidiary of Banco De OroUnibank Inc. (BDO), is projecting net earnings and total assets to grow by five and 32 percent, respectively, this year.

Net income is projected to reach P316 million, or five percent higher than the P300 million recorded in 2009. Earnings amounted to P366 million in 2008.

So far, the leasing firm reported earnings of P69.6 million in the first three months of 2010, or 29 percent better than the P53.9 million recorded in the same period in 2009.

In its report to the Philippine Stock Exchange (PSE), BDO Leasing is projecting total assets to expand to P17.2 billion this year from the P13.05 billion recorded in 2009.

Net loans and other receivables is targeted to increase to P14.3 billion this year, or 57 percent more than the P9.1 billion last year.

The company said total revenue is estimated to expand to P2.1 billion by 2010, while interest and financing charges and operating lease-related depreciation total P371 million and P865 million, respectively.

BDO Leasing said branches are expected to contribute at least 35 percent of total revenues. It reported that funding would be mainly sourced from the short-term commercial papers (STCP), bank lines and collections. Last year, it secured an approval to launch an STCP worth P8 billion.

Aside from realizing a 29 percent expansion in net earnings in the January to March period this year, BDO Leasing reported that gross revenues grew by 24.5 percent to P583.6 million from the P450.2 million last year.

In the same report, BDO Leasing said interest, discounts, rent and service fees, which represent 92 percent of gross revenues, rose by 19 percent to P535.8 million in the first quarter of 2010, from P450.2 million last year.