SEC approves applications of 30 new financing firms
() - February 3, 2003 - 12:00am
The Securities and Exchange Commission has approved the business registration applications of 30 new financing companies, bringing to 237 the total number of financing firms in the country today.

The 30 corporations applied for a certificate of authority with the SEC during the fourth quarter last year. Of these firms, 21 were formerly lending investors.

The SEC reported that BAP Credit Guaranty Corp. surrendered its license to operate as a financing company in December last year while PCCI Finance shut down its operations in General Santos. Advent Capital and Finance Corp. (formerly All Asia Capital and Trust Corp.), on the other hand, ceased operations in Cebu, Davao and Cagayan de Oro City.

An analysis of the financial data submitted by financing firms as of Sept. 30, 2002 showed that the industry incurred a net loss of P939.36 million, a turnaround from the P423.52 million profit the previous level. SEC said the drastic change could be partly attributed to Advent Capital’s net loss of P1.52 billion and higher expenses incurred by several financing firms.

Expenditures reached P4.79 billion or an increase of P191 million or 4.15 percent last year.

Gross revenues from discount fees, leasing income, interest income, service charges/fees, and other income amounted to P3.85 billion or 99.84 percent of the total gross income of the industry.

The industry’s total assets dropped 9.08 percent to P4.29 billion from P47.2 billion in September 2001.

Current liabilities, on the other hand, declined by 7.53 percent or P1.84 billion, partly due to a decrease in loans to banks by 11.2 percent or P1.42 billion from the previous year’s P12.67 billion and borrowing from private individual increased by 108.69 percent or P717 million from previous year’s balance of P660 million.

In terms of profits, PCI Leasing and Finance Corp. was the biggest with a net income of P186.97 million followed by BPI Card Finance Corp. (P110.16 million) and BPI Leasing Corp. (P91.07 million).

Others that made it to the top 10 list were Orix Metro Leasing & Finance Corp., LBP Leasing Corp., People’s Credit & Finance Corp., First Malayan Leasing & Finance Corp., UCPB Leasing & Finance, BOT Lease & Finance Phils. Inc., and Diamond Finance Corp. – Zinnia dela Peña

ADVENT CAPITAL ADVENT CAPITAL AND FINANCE CORP ALL ASIA CAPITAL AND TRUST CORP BILLION CARD FINANCE CORP CORP CREDIT GUARANTY CORP FINANCE FINANCE CORP LEASING CORP MILLION
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