Filinvest Development’s profit soars 58% to P8.9 billion
GOTIANUN-LED conglomerate Filinvest Development Corp. (FDC) reported a 58% increase in its attributable net income to P8.9 billion for 2023 from P5.7 billion the previous year, driven by increased revenues across its business segments.
The conglomerate recorded a 31% jump in its total revenues and other income to P92.8 billion in 2023 from P71.1 billion in 2022, FDC said in a stock exchange disclosure on Wednesday.
“This past operating year was marked by robust growth in all our business lines. The key to our success was a renewed focus on the fundamentals of our business and staying true to our key strategic imperatives and reliance on our core strengths as an organization,” FDC President and Chief Executive Officer Rhoda A. Huang said.
FDC said the increase in revenues and other income for its banking segment reached 35%, real estate at 20%, hospitality at 77%, power at 35%, and sugar at 16%.
“The level of total revenues and other income of FDC in 2023 has surpassed by 8% the amount generated before the pandemic of P84.6 billion in 2019,” the conglomerate said.
For the banking business, EastWest Bank saw a 32% jump in its net income to P6.1 billion in 2023 led by sustained consumer loan growth and strong deposit generation.
“The high-yielding consumer lending portfolio grew by 25% and accounted for 80% of its total loan base. Cost of funds were also stable during the period with total deposits growing by 8%. This led to a net interest income of P28.2 billion, an improvement of 21%, with a net interest margin of 7.6%,” FDC said.
For the real estate business, Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. contributed P3.7 billion net income to the group in 2023, up by 31% from P2.8 billion in 2022.
Residential segment revenues jumped by 21% increase to P16.1 billion, led by the sale and construction progress of mid-rise condominiums and housing projects, while mall and rental revenues improved by 14% to P7.6 billion, with the reduction of rental concessions, reinstatement of escalation rates, and increased occupancy levels.
For the power business, FDC Utilities, Inc. saw a net income contribution of P2.8 billion in 2023, higher by 30% from 2022. Revenues improved rose by 33% to P17.2 billion due to higher volume and average selling prices.
All units of the company’s 3×135-megawatt Misamis plant were fully contracted within the year, helped by the energization of the Mindanao-Visayas interconnection project in the second half of 2023. Its plant is located in Misamis Oriental in Mindanao that services a diverse customer base composed of mostly triple A distribution cooperatives from the region.
For the hotel business, Filinvest Hospitality Corp. recorded a P106 million net income due to the 48% growth in revenues to P2.9 billion.
Revenues from food and beverage added P1.1 billion to the segment. The company’s portfolio has approximately 1,800 rooms across seven hotels in seven cities and five regions under the Crimson, Quest, and Timberland Highlands brands.
“We look forward to sustaining the strong momentum in 2023. Our goal is to “Fast Forward Filinvest,” Ms. Huang said.
On Wednesday, FDC shares were unchanged at P5.67 apiece. FLI stocks were unchanged at 68 centavos per share. EastWest shares were unchanged at P9.12 each. — Revin Mikhael D. Ochave
