BDO Leasing and Finance, Inc. (BDO Leasing) posted a net income of P178 million in the first six months of 2018, compared to P282 million a year-ago, due to higher funding and operating costs.

Gross revenues went up by four percent year-on-year on steady interest income from its lease and finance portfolio of P34 billion, augmented by service fees and other income.

However, this was negated by higher financing charges and lower interest margins as well as increased documentary stamp tax on its commercial paper issue following the implementation of the TRAIN law early this year.

Amid a challenging operating environment, the company will continue to strengthen its marketing efforts in emerging provincial areas while leveraging on its Parent Company’s broad market reach to extend leasing and financing services to the growth sectors of the economy. Additionally, the company intends to expand and optimize its funding sources to match its asset growth and manage its funding costs.