Global Dominion Financing Inc. (GDFI), a member of the Asialink Group, has been assigned an Issuer Credit Rating of PRS A plus (corp.), with a stable outlook, by the Philippine Rating Services Corporation (PhilRatings).
In a statement, PhilRatings said a company rated PRS A has an above average capacity to meet its financial commitments relative to that of other Philippine corporates.
The company, however, is somewhat susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates. The “plus” further qualifies the assigned rating.
A stable outlook, on the other hand, means the rating is likely to remain unchanged in the next twelve months.
PhilRatings said that, in assigning the rating and its outlook, it considered key factors including the commitment exhibited by GDFI’s shareholders, as well as its experienced management team.
Also taken into consideration is the continuous expansion of the company’s branch network and product portfolio, its more than satisfactory loan portfolio quality, and GDFI’s strong earnings generation, backed by sustained loan book growth.
GDFI offers unsecured and secured credit facilities that cater to the financial needs of businesses, particularly small and medium enterprises (SMEs) and individuals, without engaging in quasi-banking (QB) functions.
It mainly provides brand new and second-hand car and truck financing and refinancing, through its growing branch network.
GDFI, through its subsidiary Global SME Loans Inc., also provides short-term business and consumer loan products to doctors, seamen, beneficiaries, and overseas Filipino workers.
In 2022 and 2023, GDFI’s loan portfolio was composed mainly of high-grade and standard loans, accounting for at least 78 percent of the total loan portfolio.
Moreover, the company’s share of non-performing loans to total gross loans was minimal at less than one percent in 2022 and 2023. The company’s above satisfactory asset quality was attributed by the company on its efforts to give more focus on secured or collateralized products and financing.
While GDFI offers both unsecured and secured loans, it is secured loans that represent the bulk of its portfolio. As of end-2023, collateral or secured loans accounted for 91 percent of gross loans to customers.
The growth in the company’s loan book has supported the continuous uptrend in earnings. Net loans to customers went up by 48.6 percent and 17.9 percent in 2022 and 2023, respectively.
Such grew from P4.7 billion as of end-2021 to P8.3 billion as of end-2023. Backed by the expansion in loan portfolio, interest income posted solid increases for both years.
In the first nine months of 2024, net income settled at P491.8 million, higher by 32.9 percent from P370.1 million recorded in the same period last year.
The growth was attributed to the 34.9 percent increase in interest income, supported by the continued expansion in the loan portfolio. As of end-June 2024, loans to customers stood at P10.1 billion, up by 22.2 percent from end-2023.