Following the discontinuance of the Company’s former financing activities and the selling of all of its leasing and loan portfolio to the BDO Unibank Group in October 2020, BDO Leasing and Finance, Inc. (BDOLF) recorded a net income of P9.5 million in the first three (3) months of 2021, earned entirely from investment income. The fair value benefit on BDOLF’s contributions was P13.6 million, while gross losses were P4.5 million.
Provided that last year’s results represented market activities prior to the complete execution of the Group’s leasing business turnaround, the company’s 1Q21 success is not comparable to the P83.3 million profit posted a year earlier. BDOLF activities were fully transferred to BDO Finance Corporation (BDO Finance), which was established in 2019 to provide consumers with continued access to lease goods and services. To maintain stability for BDOLF’s current customers, BDO Finance assumed the lease transactions booked in BDOLF.
It should be remembered that BDOLF has not approved any new leasing transactions since October 2020, when it ceased to exist as a leasing firm.
Despite the company’s shift in strategy, BDOLF’s book value per common share increased by 5.7 percent to P2.76 in the first quarter of this year, up from P2.61 a year earlier.
