The company’s 1Q21 performance is not comparable to the P83.3 million profit recorded a year ago, given that last year’s results reflected business operations before the full implementation of the Group’s restructuring of its leasing business. The restructuring entailed the full transition of BDOLF operations to BDO Finance Corporation (BDO Finance), established in 2019 to offer customers continued access to lease products and services. BDO Finance likewise assumed the lease transactions booked in BDOLF to ensure continuity to the latter’s existing clients.
It should be noted that BDOLF has already ceased to operate as a leasing company and has not accepted any new leasing transaction since October 2020.
Despite the change in direction for the company, BDOLF’s book value per common share for the 1Q21 rose by 5.7 per cent to P2.76 from P2.61 a year ago.
About BDO Leasing
BDO Leasing and Finance Inc. used to be the leasing and financing entity under the BDO Unibank Group.
Following the BDO Group’s restructuring of its leasing business in 2020, BDOLF’s assets were sold to other entities in the Group, leaving BDOLF as a listed holding company.
About BDO Finance
BDO Finance Corporation (BFC) is a privately-held, wholly-owned financing company of BDO Unibank, Inc. (BDO) that provides direct leases, sale and leaseback arrangements, mortgage lending, and factoring services. BFC assumed the lease transactions booked in BDO Leasing which underwent restructuring in 2020, thus ensuring continuity to BDO Leasing’s existing clients.