GOTIANUN-LED Filinvest Development Corp. (FDC) reported on Thursday a 28% drop in net income attributable to equity holders to P6.1 billion as its businesses recorded mixed results in 2021.

“Our financial results in 2021 were mixed across our businesses resulting from the varying degrees of economic impact caused by the COVID-19 (coronavirus disease 2019) disruptions. We saw higher reservation sales in the residential business, particularly the affordable horizontal segment. However, volumes have not returned to pre-pandemic levels for most of the businesses by the end of 2021,” FDC President and Chief Executive Josephine T. Gotianun-Yap said in a disclosure.

“Now that the economy has opened up and mobility restrictions have been lifted, we are looking forward to regaining lost ground especially in banking, commercial leasing and hospitality,” she added.

Consolidated net income dropped by 23% to P8.9 billion, FDC said.

Without giving comparative figures, it said revenues and other income were lower by 13% as the growth posted by the residential and power businesses were offset by the contraction of the banking and commercial leasing units.

East West Banking Corp., FDC’s banking and financial services subsidiary, delivered a net income contribution to the group of P4.3 billion or 40% of FDC’s bottom line. The figure was 32% lower than 2020’s P6.4 billion due to lower loan revenues and trading gains.

The bank’s total revenues and other income also declined by 22% to P28.8 billion.

“The drop in interest income was partly tempered by lower costs as EastWest maintained its industry leading net interest margin at 6.6% while the current and savings account ratio improved to 75% from 70% the previous year,” FDC said.

“Trading and foreign exchange gains were lower by 65% at P1.9 billion as interest rates remained steady for most of the year. Fees and commissions income was flat at P3.7 billion as the volume of transactions continued to be below pre-pandemic levels,” it added.

On the other hand, provisions for loan losses were lower by 58% to P4.1 billion given the high provisioning done in 2020.

“While loan losses have been accounted for, the reduced loan volumes affected return on equity that was recorded at 7.7%,” the company said.

Meanwhile, FDC’s property business, composed of the real estate and hospitality segments, delivered a combined P4.2 billion or 39% of the total income. The power subsidiary contributed P2.1 billion in net income or 19% of the total.

At the stock exchange on Thursday, FDC shares fell by 0.14% or P0.01 to close at P6.93. — Luisa Maria Jacinta C. Jocson