BDO subsidiary Dominion Holdings posts lower net income in first nine months of 2022

BDO Unibank Inc.’s subsidiary Dominion Holdings Inc. posted a decline in its net income in the first nine months of the year, dragged by higher expenses during the year.

In an emailed statement, BDO said Dominion Holdings recorded a net income of P28 million from January to September this year, down from the P39.8 million the same period last year.

The decline was attributed to higher total expenses which climbed to P21.5 million from P13.1 million, mainly due to a tax adjustment from the Bureau of  Internal Revenue for a prior period.

This comes as the company said rising interest rates drove the fair value gain on its investments up to P49.5 million from P45 million the same period last year.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) in September hiked policy rates by another 50 basis points, as it expects inflation to average 5.6% this year, higher than the target range of 2% to 4%.

Prior to this, it already raised rates by 50 basis points in August, 75 basis points in an off-schedule hike in July, and 25 basis points each in June and May.

Formerly known as BDO Leasing & Finance Inc., Dominion Holdings has shifted its primary purpose from a leasing and financing company to 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 its shareholders,” it said.

Aside from Dominion Holdings, BDO’s subsidiaries include BDO Capital & Investment Corp., BDO Private Bank Inc., BDO Finance Corp., and BDO Securities Corp.

The lender ended 2021 with 1,542 operating domestic branches, including one branch each in Hong Kong and Singapore.—AOL, GMA News