Filinvest Development earns 77 percent more at P3.9 billion

MANILA, Philippines — The Gotianun family’s Filinvest Development Corp. (FDC) reported a net income of P3.9 billion in the first half of the year.

This was 77 percent higher than the P2.2 billion recorded a year ago, with growth driven by a 29 percent increase in total revenues to P42.5 billion.

FDC president and CEO Chiqui Huang said businesses continued to recover from the COVID-19 pandemic.

Among the different businesses, banking accounted for 41 percent of revenue; real estate, nine percent; power, 24 percent; sugar, 36 percent; and hospitality, 61 percent.

“We look forward to sustaining our growth momentum for the balance of the year. We are working to make the businesses and the entire organization even stronger under the leadership of newly appointed executives in the business units and FDC, the parent company,” Huang said.

For this year, the Filinvest Group has earmarked P35 billion for capital expenditures.

About half of the P35 billion has been set aside for the real estate and hospitality businesses. The balance will go to investments in new ventures including renewables, water and other urban solutions.

FDC’s businesses include banking, power, hospitality and real estate.

During the six-month period, revenues from EastWest Bank grew by 32 percent or by P3.8 billion on the back of higher interest income from loan growth this year. Net income doubled to P3.2 billion during the period.

From its real estate business, recurring revenues grew by 16 percent. Mall leasing revenues almost quadrupled as rental concessions made during the pandemic were removed and as rental escalation was reimposed resulting in an 18 percent growth in net income.

Revenues from power grew by 24 percent due to the significant increase in electricity prices driven by the high prices of fuel while net income grew by only four percent from the first half of 2022, the company also reported yesterday.

Hospitality revenues jumped by 60 percent due to higher occupancy rates and average room rates across hotel properties as travel and tourism started to recover.

Net earnings from hospitality surged by 84 percent.

Other income improved by 79 percent, coming mainly from EastWest Bank’s higher trading gains, service charges and commissions.