GOTIANUN-LED Filinvest Development Corp. (FDC) reported a 46% increase in its second-quarter (Q2) attributable net income, reaching P2.62 billion from P1.8 billion last year, attributed to enhanced performance across its banking, power, and property sectors.
Second-quarter revenue rose by 32.5% to P29.04 billion from P21.93 billion a year ago, FDC said in a stock exchange disclosure on Thursday.
For the first half, FDC recorded a 41% increase in its attributable net income to P5.5 billion from P3.9 billion last year. The banking business contributed 38% of total net income, followed by power at 31%, property at 22%, and sugar milling at 9%.
January-to-June revenue likewise increased by 30% to P55.49 billion compared with P42.65 billion in 2023.
Among business units, the banking segment contributed 44% of total revenue, followed by power and real estate at 23% each. The hospitality business contributed 4%, while the balance was distributed among other businesses.
“FDC’s strong performance in the first half of 2024 was broad-based, led by banking, power, and real estate. We look forward to sustaining our robust growth as we keep honing our strategies and operations, and as we implement important capital investments for long-term growth,” FDC President and Chief Executive Officer Rhoda A. Huang said.
For its banking segment, East West Banking Corp. said its top-line growth was driven by a 22% increase in consumer loans, leading to a 28% jump in net interest income.
Consumer lending remained the bank’s core product, contributing 82% of the total loan book.
On the power business, FDC Utilities, Inc. saw a 75% increase in first-half revenue led by higher energy sales from its 405-megawatt plant in Misamis Oriental. The rise in sales came from the Mindanao-Visayas interconnection project.
For the real estate segment, FDC’s subsidiaries Filinvest Land, Inc., Filinvest Alabang, Inc., and Filinvest REIT Corp., saw an 18% revenue growth due to improved residential sales and mall rentals.
The conglomerate’s hotel business, led by Filinvest Hospitality Corp., increased revenues by 49% on the resurgence in domestic tourism and international arrivals. The hotel unit saw higher room occupancy and rates across its Crimson, Quest, and Timberland Highlands brands.
Meanwhile, FDC forecast a P26 billion capital expenditure (capex) budget this year, a slight improvement from the initial estimate of up to P25 billion.
Among businesses, 61% of the capex will be allotted to real estate projects, 20% to power projects, 9% for the expansion of the hospitality business, and the balance for other businesses.
FDC shares fell by 1.48% or eight centavos to P5.34 apiece on Thursday. — Revin Mikhael D. Ochave
