BDO Leasing posts growth in 2009; sees good prospects in 2010

BDO Leasing intensified its marketing efforts in 2009 and with the support of its parent bank, BDO Unibank, grew its net loan portfolio by 19% to P9.1 billion from P7.7 billion in 2008 while total assets ballooned by 25% to P13.1 billion in 2009 from P10.4 billion the previous year.

Total revenues, likewise, posted a significant increase from P1.4 Billion in 2008 to P2.2 Billion in 2009, or a 61% increase mainly coming from rental revenues.

It took a conservative stance vis-a-vis the economic environment, taking into consideration the effects of typhoons Ondoy and Pepeng by increasing its loan loss provisioning. It, likewise, effected a one-off adjustment in depreciation for its assets in its wholly owned subsidiary, BDO Rental. Despite these adjustments, coupled with the thinning of margins due to competition, the company still managed to post a respectable 2009 net income of P300 million.

The steady performance allowed BDO Leasing to declare cash dividends to shareholders in July and December amounting to P432 Million or P0.20 per share. This is the highest dividend payout made by your company from the time it became publicly traded in 1997.

Meanwhile, to support earning asset growth, BDOLF secured an approval from the Securities and Exchange Commission (SEC) to raise its Short-Term Commercial Paper (STCP) license from P4 Billion to P8 Billion. The STCP issue was given a high rating of "PRS 2 minus" by Philippine Rating Services Corporation (PhilRatings) based on "BDO Leasing's solid market position, sound capital base and the continuing benefits derived from its synergy with the parent company, BDO, as well as the relatively positive prospects for the local leasing and financing industry".

With BDO as its parent firm, thus resulting in synergy, BDOLF continued to perform well in 2010 as the net loan portfolio further grew to P9.8 billion at the end of the first quarter.

Given the overall business confidence index in an upbeat trend, as published by BSP in its 1Q2010 Business Expectation Survey, BDO Leasing is optimistic in its growth, while also prepared for possible economic challenges ahead.