PCI Leasing and Finance Inc. saw its profits drop sharply last year as it moved to set aside funds to cope with a large bad-asset portfolio. The company’s products include commercial loans, receivables discounting and factoring and leasing products.
Finance receivables stood at P4.474 billion, up by 26 per cent from the end-2002 figure.
The firm, a subsidiary of Equitable PCI Bank, reported a net income of only P258.17 million at the end of last year, representing a decline of 16 per cent from the 2002 income level of P306.9 million.
Company sources said management set aside a total of P230 million in loan loss provisioning to guard the firm’s balance sheet against further defaults.
A statement issued by PCI Leasing was silent on the lower net income, focusing instead on the firm’s rising asset base and higher revenues last year and adding that it remains “the most profitable finance company.”
