BDO Leasing & Finance Inc., a subsidiary of BDO Unibank Inc., reported lower net profit in the first nine months of the year.
In a statement, BDO Leasing & Finance said its earnings hit P39.8 million in the first nine months of 2021. This is significantly lower than its profit of P134.6 million earnings a year-ago.
The financing arm said the profit in the first nine months of the year was derived solely from fair value gain from investments in Unit Trust Investment Funds (UITFs).
In particular, of the P6 billion of BDO Leasing & Finance’s assets as of end-September, almost all or P5.9 billion was invested in UITFs.
The January to September 2021 results were lower compared to the earnings last year, as last year’s earnings was based on a balance sheet prior to the full implementation of the restructuring of BDO Unibank Group’s leasing business.
This entailed the sale of substantially all of BLFI’s assets to BDO Unibank, BDO Life, and BDO Finance Corp.
BDO Leasing & Finance ceased to operate as a leasing company and completed the assignment and transfer of its leasing and financing business to affiliate BDO Finance on October 19, 2020.
BDO Finance was established to offer customers continued access to lease products and services and, likewise, assumed the lease transactions booked in BDO Leasing & Finance to ensure continuity to the latter’s existing clients.