Filinvest Q1 Profit Surges with 36% Jump

Filinvest Development Corporation (FDC) posted a year-over-year increase of 36% in net income aof PHP 2.9 billion in the first quarter.

Filinvest Development Corporation (FDC) posted a year-over-year increase of 36% in net income attributable to equity holders of the parent company of PHP 2.9 billion in the first quarter, compared to PHP 2.2 billion in the same period last year.

The company’s consolidated net income rose 27% year-over-year to PHP 3.7 billion. FDC attributed the growth to strong contributions from its banking, power and property businesses, according to its most recent earnings release. Total revenues and other income grew 28% to PHP 26.4 billion. 

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

EastWest Bank: Consumer Lending

EastWest Bank (EW) grew its net income 6% for a contribution to the group of PHP 1.2 billion for the quarter, or 36% of the bottom line. On a standalone basis, the net interest income of EW increased by 34% to PHP 8.2 billion, supported by the 19% expansion in lending activities led by credit cards, auto, personal, and salary loans, FDC said.

FDC noted that consumer lending remained EW’s core product, as it accounted for 81% of the total loan book, and this helped push net interest margin to 8.1%. “EW continued to deploy excess liquidity towards high-yielding consumer loans and long-term securities,” according to the release.

FDC Utilities: Energy Sales Volumes

FDC’s power subsidiary, FDC Utilities, Inc. (FDCUI), reported a 65% surge in net income to PHP 1.0 billion in the first three months of 2024, contributing 29% to the group total. According to FDC, the growth was driven by higher-than-expected energy sales volumes as well as increased operational plant efficiency. 

All units of its 405-megawatt FDC Misamis plant were fully contracted, facilitated by the energization of the Mindanao-Visayas interconnection project in the second half of last year. Its plant is located in Misamis Oriental, Mindanao, and services a diverse customer base composed of mostly triple A distribution cooperatives from the VisMin region and a retail electricity supplier. FDCUI also has solar energy solutions through a 60/40 joint venture with Engie, one of the largest power generators and distributors in the world. Further, the Filinvest group has an interest in water through FDC Water Utilities Inc. (FDCWI), a wholly owned subsidiary of FDCUI. 

Filinvest Land: Residential Sales

FDC’s real estate business, composed of listed subsidiary Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. (FAI), contributed PHP 704 million in net income to the group for the quarter, 17% higher than PHP 600 million in the same period last year and contributing 21% of the group total.

FDC said the growth was led by the 24% improvement in residential sales to PHP 3.6 billion from accelerated construction progress of its projects and the strong performance of medium-rise condominiums. Mall and rental revenues rose by 4% to PHP 2.0 billion from higher mall occupancy and foot traffic. Meanwhile, hotel operations under Filinvest Hospitality Corporation (FHC) added PHP 37 million to the group’s net income in the first quarter. 

The recovery of domestic tourism supported the increase in occupancy and room rates across all the operating properties, FDC said. 

The company said its balance sheet remained healthy at the end of the quarter, with total assets of PHP 746.1 billion. For 2024, the Filinvest group is allotting a total combined capital expenditure budget of PHP 25 billion, 60% of which will go to the development of real estate projects. Another 15% of the total will be used to pursue renewable energy projects, 15% for the expansion of the hospitality business, and the balance for digitalization and other businesses, it stated.