EARNINGS of Filinvest Development Corp. (FDC) jumped 20% for the second quarter of 2017, driven by the growth of the double-digit growth in its banking arm coupled with the sustained performance of its property, power, and sugar businesses.
In a regulatory filing, the holding firm of the Gotianun family reported a net income attributable to the parent of P1.85 billion, higher than the P1.54 billion it delivered in the same period a year ago. Total revenues for the April to June period amounted to P15.84 billion, up 7.35% year on year.
The increase was boosted by the 66% rise in the attributable profit of East West Banking Corp. to P1.29 billion for the quarter, as well as the 8% increase in Filinvest Land, Inc. (FLI)’s net income attributable to the parent to P1.211 billion.
This pushed FDC’s attributable profit for the first half to P3.37 billion, 12% higher than the P3.01 billion it realized in the comparable period in 2016. Revenues for the six-month period likewise exhibited a 12% growth to P32.42 billion.
The banking and financial services group contributed the biggest share of revenues at 42%. The segment’s net income surged 57% to P2.43 billion for the first six months of 2017, driven by a 15% rise in net revenues to P11.93 billion.
“As you can see, our concluded branch store expansion is showing results with the growth in the core products of consumer loans and deposits,” FDC Chairman Jonathan T. Gotianun said in a statement.
The property segment, meanwhile, comprised 38% of revenues. Consolidated revenues and other income went up 3.4% to P11.32 billion for the first two quarters, driven by a rise in rental revenues.
On the other hand, FDC’s power business through FDC Utilities, Inc. accounted for 15% of its revenues. Power revenues jumped 55% to P4.97 billion in the first half, as FDC Misamis coal plant began commercial operations in the fourth quarter of 2016.
Sugar operations through Pacific Sugar Holdings Corp. saw sales fall 39% to P1.55 billion in the first half, due to the late start of milling for the current crop year.
“We look forward to continued growth in 2017, as we not only see the fruition of strategic decisions made in the past but also we explore the new opportunities for growth in the Philippines,” FDC President and Chief Executive Officer Josephine Gotianun-Yap was quoted as saying in a statement.
Shares in FDC lost 18 centavos or 2.31% on Tuesday, closing at P7.62 each at the stock exchange. — Arra B. Francia