Toyota Financial Services profit reaches P4.2 billion
CAR LEASING company Toyota Financial Services Philippines Corp. (TFSPH) reported doubledigit increases in income and assets as of end-March, driven by a surge in car loans during the period.
In a statement, the financing arm of car maker Toyota Motor Philippines Corp. ( TMP) reported that gross profits jumped by a fourth to reach P4.2 billion for the fiscal year ending March, coming from P3.3 billion booked a year ago.
A P15.6- billion increase in approved loans for car financing and lease deals drove the surge in incomes. This also supported the growth in total assets to P58.7 billion, up by 29.8% from P45.3 billion posted during the previous fiscal year.
In particular, net interest income posted a 28% growth to P2.3 billion, coming from P1.8 billion a year ago.
Cars purchased from Toyota are often referred to TSFPH for financing agreements.
TFSPH said it remains the top leasing company in the Philippines as it serves over 90,000 customers, according to its president Atsushi Murakami.
The quasi- bank forms part of Toyota’s network of sales finance companies under the global Toyota Financial Services Corp., which operates in 36 countries. The Ty- led GT Capital Holdings, Inc. owns a 40% stake in TFSPH.
It has been operating for 15 years in the Philippines, with the company planning to pursue further expansion.
“As part of its growth strategy, TFSPH has expanded its nationwide presence with new business centers established in San Fernando, Pampanga and Cebu City, Cebu. This expansion will carry on with business centers set to open in Davao and South Luzon in the last quarter of 2017,” the car financing firm said in the statement.
TMP, the firm’s parent company, expects to surpass its full-year car sales target of 175,000 units as consumers advance their car purchases ahead of planned higher duties on cars to be imposed by 2018, which are included in the tax reform package currently being discussed in Congress.
The car company has sold 103,000 vehicles as of mid-August. During the first semester, Toyota saw revenues grow by 15% to reach P82.1 billion as it cornered 39% of the Philippine auto sector.