BDO Leasing loan portfolio up 8% to P9.8 billion in first quarter

MANILA, Philippines - BDO Leasing and Finance Corp., a subsidiary of top lender Banco de Oro Unibank Inc. (BDO), said its net loan portfolio went up to P9.8 billion in the first three months of 2010, nearly eight percent higher compared to P9.1 billion at end-2009.

Total assets rose 25 percent to P13.1 billion in 2009 from P10.4 billion the previous year while total revenues posted a 61-percent increase from P1.4 billion in 2008 to P2.2 billion last year.

However, the destructive impact of typhoons Ondoy and Pepeng in late 2009 forced BDO Leasing to increase provisioning for possible losses. It, likewise, effected a one-off adjustment in depreciation for its assets in its wholly owned subsidiary BDO Rental.

Thus, net income for full year 2009 still registered a modest P300 million from P366 million in 2008.

The steady performance allowed BDO Leasing to declare cash dividends to shareholders in July and December amounting to P432 million or P0.20 per share.This was the highest dividend payout made by the company from the time it became publicly traded in 1997.

BDO Leasing was able to secure an approval from the Securities and Exchange Commission (SEC) to raise its short-term commercial paper (STCP) license from P4 billion to P8 billion.

The STCP issue was given a high rating of “PRS 2 minus” by Philippine Rating Services Corp. (PhilRatings). The domestic rating agency said the leasing firm had “solid market position, sound capital base and the continuing benefits derived from its synergy with the parent company, BDO, as well as the relatively positive prospects for the local leasing and financing industry.”