Filinvest almost doubles income to P1.27B in ’05

Benefitting from an improving economy and stronger remittances from workers overseas, Filinvest Development Corp. (FDC) almost doubled its net income last year with profits reaching P1.27 billion compared with P775.72 million a year earlier.

Net revenues rose 16.6 percent in 2005 to P5.06 billion from P4.34 billion. Of the total, real estate operations accounted for P3.81 billion, which was six precent higher than the previous year’s P3.58 billion.

Rental revenues rose 19 percent with the increased occupancy in Festival Supermall, PBCom Tower, FAI lots, Westgate, and South Central CyberZone.

Revenues from financial and banking services, on the other hand, amounted to P1.25 billion or an increase of 65 percent from P759.64 million a year earlier.

East West Bank, the banking unit of the Filinvest Group, ended 2005 with a net profit of P202 million, up 459 percent from P44 million a year ago. With the bank’s focus on consumer financing, interest income surged 72 percent mainly supplied by auto loans, credit card, salary loans and investments. With the bank’s aggressive deposit campaigns and introduction of new products, volume of deposits grew 15 percent which brought financial services to P1.2 billion or a 28 percent increase from P922 million in 2004.

Coupled with lower sale of club shares, which went down 42 percent, and higher deferred gross profit due to more sales booked under the installment method, total gross profit fell 17 percent. Other income grew 31 percent to P1.4 billion from P1.1 billion, mainly sourced from interest in installment contracts and investment and gain from the exchange of land.

As a result, the group’s earnings before interest, taxes, depreciation and amortization went up 14 percent to P2.6 billion. Depreciation and amortization increased by 31 percent due to decomponetization of Festival Supermall and CPI buildings. Interest expenses fell 42 percent with the group taking advanrtage of the low interest rates.

Meanwhile, Filinvest Land Inc., the property unit of FDC, reported a 10 percent growth in net income last year to P656.28 million from P597.7 million a year ago.

Sales booked increased eight percent to P41 billion. It came mostly from the projects of the Cortebella unit particularly Spring Country, Serra Monte Villas, The Tropics, Parkspring, Auburn Place, Corona del Mar, Orange Grove, Aldea Sol, and Fuente de Villa Abrille.

Some projects in Futura and Pabahay like Brookeside Lane, Crystal Aire and Beldevedere Townhomes likewise performed well.

New projects launched late last year also did well which include the Mandala Farm Estate of Timberland Heights in San Mateo.

Major reasons cited for the good performance are strong OFW demand, attractive pricing, the continuous marketing activities, promos and incentives being offered to both buyers and sellers, availability of affordable financing packages, and strong government support.