FDC grows profit by 21%

MANILA, Philippines - Filinvest Development Corp. (FDC) reported a 21 percent growth in net income in the first nine months of the year  to P5.9 billion, driven largely by its banking business.

Its banking subsidiary, EastWest Bank, posted a net profit of P2.3 billion, up 78 percent year-on-year.

Property unit Filinvest Land Inc. (FLI) saw a seven percent hike in net earnings to P3.5 billion.

The growth in FDC’s net income was achieved on the back of a 15 percent growth in consolidated revenues to P42 billion.

The bulk of the total revenue came from its banking business, contributing 42 percent, real estate (38 percent), power, sugar and hotel subsidiaries (11 percent, six percent, and three percent, respectively).

Last September, FDC Utilities Inc. (FDCUI) marked a major milestone with the inauguration of its three-unit 135-megawatt clean coal power plant in Villanueva, Misamis Oriental.

“We are proud to say that all three units are now connected to the grid. Two units have been declared commercially operational and we expect the third to be declared before year end,” FDC president and CEO Josephine Gotianun-Yap said.

“FDC’s income mix in 2017 will be significantly altered with the addition of this plant. With total capacity of 405MW, it is now the biggest power plant in Mindanao and will put an end to the power crisis in the region,” she added.

Meanwhile, EastWest’s loan portfolio grew 32 percent, driven by consumer demand and supported by a 30 percent rise in deposits,  mainly from low-cost deposit accounts.

Consequently, the bank’s net interest income rose 24 percent while non-interest income climbed 58 percent.

To date, EastWest has 443 stores nationwide, almost triple its consolidated nationwide network five years ago.

“As the results bear out, we are harvesting the initial fruits of our investment in the branch-store expansion,” FDC chairman Jonathan Gotianun said.

“Not only are we strengthening our core businesses, but we are diversifying our sources of income with our new joint venture and subsidiaries as well,” Gotianun added.

The bank’s newest subsidiary, EastWest Leasing and Finance, recently received its regulatory permits, while “Troo,” the bank’s joint venture with Belgium-based Ageas Insurance, also commenced its bancassurance operations in April.

Last May, EastWest finalized its acquisition of the retail banking business of Standard Chartered Philippines, which includes credit cards, personal loans, wealth management and retail deposits.

The transfer of accounts is ongoing and is expected to be completed before the end of the year.

FLI increased its revenues by six percent to P13.6 billion as of the end of September.

Rental revenues rose 14 percent to P2.3 billion driven by increased revenues from office buildings.   

The company recently completed two new buildings, Filinvest Cyberzone Bay City 1 and 2, with 37,000 square meters of gross leasable area (GLA).

FLI is also growing its retail rental space portfolio with the major expansion of Festival Mall in Alabang to add almost 100,000 square meters of gross floor area (GFA) to the complex.

By the end of 2016, FLI is expected to double its end-2015 GFA level to more than 433,000 square meters.