MANILA, Philippines - Earnings of the leasing and financing arm of BDO Unibank Inc. rose 2.5 percent amid the sustained growth in business volumes last year.
BDO Leasing and Finance Inc. booked a net income of P570 million last year, P14 million higher than the P556 million in earnings recorded in 2015.
The leasing firm’s gross revenues booked a double-digit growth of 10 percent to P2.9 billion as it managed to expand its net lease and loan portfolio by 14 percent to P31 billion.
“The company will continue to leverage on its Parent Company’s wide market reach and boost marketing efforts in emerging growth areas and key provinces to sustain its growth momentum and keep its position as one of the leading providers of leasing and financing services,” BDO Leasing said.
BDO Leasing continues take advantage of the sustained growth in vehicle sales through MMPC Auto Financial Services Corp.
BDO Leasing formed a joint venture company with MMPC, Sojitz Corp. (SJC) and JACCS Co. Ltd. (JACCS) to provide financing services to individual and corporate buyers of Mitsubishi vehicles.
It owns 40 percent of MMPC Auto Financial Services Corp. while the Japanese partners including MMPC controls 60 percent of the joint venture company.
The leasing company owned by retail and banking magnate Henry Sy is seen harnessing the complementary strengths of the joint venture partners to take advantage of the sustained growth in vehicle sales on the back of increasing consumer affluence and a growing population.
BDO Leasing provides customers direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring.
It also provides operating leases through its wholly owned subsidiary BDO Rental Inc.
Earnings of BDO Unibank, the country’s largest bank, climbed 4.4 percent to hit a record P26.1 billion last year from P25 billion in 2015 on the back of strong results across its core businesses.
For this year, the Sy-led bank sees earnings growing 10 percent to a new record high of P28.8 billion fueled by the country’s sustained economic growth.