BDO Leasing and Finance, Inc. (BDO Leasing) turned in a profit in the first quarter to reflect the effectiveness of its measures against margin compression.

In a statement to the local bourse on Monday, BDO Leasing said it saw a net income of P83 million in the first three months of 2020, a reversal of the loss of P24 million booked in January to March last year.

The firm’s gross revenues totalled P696 million. Meanwhile, total expenses declined by 30% to P569 million on the back of the 52% drop in interest and financing charges as funding costs returned to their normal level.

“The results reflect successful measures undertaken to address margin compression, which dragged down its financial results in 2019,” BDO Leasing said in a statement.

Earlier this year, BDO Unibank, Inc., the firm’s parent company, said it was selling its controlling stake at BDO Leasing for P5.451 billion to a third party as part of the restructuring of its leasing business.

BDO Leasing’s net profit in 2019 settled at P46.8 million, plummeting by 85.85% from the P330.7 million seen in 2018.

The firm’s revenues in the previous year also slipped 6.27% to P3.01 billion. – L.W.T. Noble