DOMINION HOLDINGS, Inc., formerly BDO Leasing & Finance, Inc. (BLFI), saw its net profit drop in the first six months of the year due to a decline in its income from investments amid lower interest rates.
The firm’s net earnings stood at P3.7 million in the January to June period, 87.2% lower than the P29.1 million it booked last year, it said in a filing with the local bourse on Thursday.
Total expenses rose to P20.8 million from P9.4 million in the same period, which was attributed to a tax adjustment.
The change in BLFI’s corporate name and amendments to its articles of incorporation and by-laws were approved by the Securities and Exchange Commission (SEC) on July 18. This is in line with the strategic direction of its parent, BDO Unibank Inc. (BDO), to convert BLFI into a holding company.
“As an investment holding company, Dominion Holdings, Inc. will have more flexibility in pursuing business opportunities which will enhance shareholder value for all shareholders,” Dominion Holdings said.
“Dominion Holdings’ primary purpose is to hold or own real estate properties, securities and shares of stocks, and other assets of other companies, and engage in investment and business activities involving these assets,” it added.
BLFI stopped operating as a leasing company on Oct. 19, 2021 and completed the assignment and transfer of its leasing and financing business to an affiliate, BDO Finance Corp.
BDO Finance was established to offer continued access to leased products and services for its customers. It also assumed the lease transactions booked by BLFI’s existing clients.
BLFI filed with the SEC a letter surrendering its Certificate of Authority to operate as a financing company on July 5. — KBT