Fair value gain from investments in unit trust investment funds (UITFs) boosted the net income of the holding company of BDO Unibank Inc. led by bankero Nestor Tan last year.
BDO Leasing and Finance Inc. reported profits of P43.6 million in 2021 or about 7.5 times the P5.8 billion recorded in 2020 when the listed company was restructured.
The BDO subsidiary ceased to operate as a leasing company and completed the assignment and transfer of its leasing and financing business to an affiliate, BDO Finance Corp. in October 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 and Finance to ensure continuity to the latter’s existing clients.
The country’s largest lender reported that the sale of its controlling 88.5 percent stake in BDO Leasing and Finance to a group of investors consisting of businessmen Luis Yu Jr., Vittorio Lim, and Victor Lim Jr. failed to materialize.
BDO said an agreement entered into with the third party buyers last January 2020 lapsed in January last year 2021 after it failed to comply with the closing conditions on account of the non-resolution by the request for reconsideration of suspension order issued by the Securities and Exchange Commission (SEC) on the registration statement of BDO Leasing and Finance.
The suspension order prevented BDO Leasing and Finance from offering shares to the public.