Banking, power, property drive up FDC profit

MANILA, Philippines — Strong contributions from the banking, power and property businesses fueled a double-digit earnings growth for Filinvest Development Corp. (FDC) in the first quarter.

The listed conglomerate of the Gotianun family reported a 36-percent jump in net income attributable to equity holders of the parent company to P2.9 billion in the first quarter from P2.2 billion in the same period last year.

FDC’s consolidated net income, likewise, rose by 27 percent year-on-year to P3.7 billion.

Revenues and other income generated during the three-month period stood at P26.4 billion, up by 28 percent year-on-year and faster than the increase in costs and expenses of 25 percent.

“We are pleased with the strong financial results during the first quarter. We will push to maintain the momentum as we strive toward the fulfillment of our long-term goal of sustained growth in earnings,” FDC president and CEO Rhoda Huang said.

For the quarter, the banking and financial services accounted for 36 percent of FDC’s bottom line as it contributed a net income of P1.2 billion to the group, six percent higher than the same period last year.

EastWest Bank saw net interest income grew by 34 percent to P8.2 billion on the back of expansion in lending activities led by credit cards, auto, personal and salary loans.

FDC Utilities Inc., FDC’s power subsidiary, contributed 29 percent of the group’s total net income for the quarter at P1 billion, a 65 percent surge from last year.

The growth was attributed to higher-than-expected energy sales volume as well as increased operational plant efficiency.

FDC’s real estate business composed of listed subsidiary Filinvest Land Inc. and Filinvest Alabang Inc. contributed P704 million in net income to the group, 17 percent more than the P600 million recorded in the first quarter of 2023.

FDC said the increase was driven by improvement in residential sales from accelerated construction progress of its projects and the strong performance of medium-rise condominiums.

Higher mall occupancy and foot traffic helped push mall and rental revenues to a four percent increase to P2 billion.

Hotel operations under Filinvest Hospitality Corp. likewise added P37 million to FDC’s net income in the first quarter as the recovery of domestic tourism supported the increase in occupancy and room rates across all the operating properties.

The Filinvest Group is earmarking a total combined capital expenditure budget of P25 billion this year.

The bulk or 60 percent of the capex will go to the development of real estate projects, while another 15 percent will be used to pursue renewable energy projects and another 15 percent for the expansion of the hospitality business.