BDO LEASING and Finance, Inc. (BDOLF) registered a higher net profit last year despite booking lower revenues on the back of decreased funding costs.

The firm’s net income stood at P252.3 million in 2020, more than eight times or 439% higher than the P46.8 million it booked in 2019, it said in a filing with the local bourse on Tuesday.

Its gross revenues dropped 22% to P2.4 billion amid lower interest income since its operations were scaled down following the sale of most of its earning assets to parent BDO Unibank, Inc.

“This was part of the restructuring of the group’s leasing business where the operations of BDOLF fully transitioned to BDO Finance Corp. (BDO Finance), which was established last year to offer customers continued access to lease products and services,” BDO Leasing said.

“BDO Finance likewise assumed the lease transactions booked in BDOLF to ensure continuity to the latter’s existing clients.”

BDO in January last year entered into an agreement to sell its majority stake in BDOLF for P5.451 billion to restructure its leasing business.

On the other hand, BDOLF’s total expenses fell 34% to P2 billion as interest and financing charges shrank 62% due to the low rate environment and amid declining borrowing levels.

BDOLF’s parent BDO saw its net earnings drop by 36.2% to P28.2 billion in 2020 from P44.2 billion in 2019 due to higher loan loss provisions amid the pandemic.

Trading of BDOLF shares is suspended. Meanwhile, BDO shares closed at P109.30 apiece on Tuesday, down by 10 centavos or by 0.09% from its previous close. — L.W.T. Noble