BDO LEASING and Finance, Inc. (BDO Leasing) saw a decline in its net income in the first quarter amid higher funding costs.
In a disclosure to the Philippine Stock Exchange on Wednesday, the listed leasing and financing arm of Sy-led BDO Unibank, Inc. said it booked a P90-million net profit in the first three months of the year, 37.5% lower than the P144-million net income it posted the same period last year.
BDO Leasing attributed its lower profit to “higher funding, operating and credit costs.”
“In a rising interest rate environment, the increase in yields tends to lag behind the increase in funding costs,” BDO Leasing added.
Despite of this, the firm still booked a modest growth of 4% in its gross revenues supported by a 5% expansion in its lease and loan portfolio.
Moving ahead, BDO Leasing said it will continue to leverage on its parent company’s extensive market reach.
According to latest central bank data, BDO Leasing’s parent BDO is the country’s biggest bank in terms of assets, capital, deposits and loans.
It added that it intends to “strengthen its market reach” in order to penetrate new market and support the growth sectors in the economy.
BDO Leasing shares closed at P3.08 apiece on Wednesday, down two centavos or 0.65%. — KANV