BDO Leasing and Finance, Inc. (BDO Leasing) saw a decline in its net income in the first half of the year on the back of higher funding and operating costs.
In a regulatory filing Wednesday, the listed leasing and financing arm of Sy-led BDO Unibank, Inc. said it booked a net profit of P178 million in the January-June period, 36.9% lower than the P282 million tallied in the same period last year.
BDO Leasing attributed its lower profit to “higher funding and operating costs.”
Despite logging lower net income in the first semester of the year, the firm’s gross revenues climbed 4% year-on-year.
This was mainly driven by the P34-billion interest income from its lease and finance portfolio augmented by service fees and other income.
However, BDO Leasing said this was tempered by higher financing charges and lower interest margins.
Higher documentary stamp tax on its commercial paper issue also helped temper its revenue growth. — Karl Angelo N. Vidal