Filinvest holding firm boosts income by 67%

MANILA, Philippines - Filinvest Development Corp. (FDC), the investment holding firm of the Gotianun family, said its net earnings in the first quarter this year grew 67 percent to P952 million on higher contributions from its banking and real estate units.

In a disclosure to the Philippine Stock Exchange, FDC said revenues slightly increased to P1.18 billion from P1.15 billion a year earlier. The group’s financial services business through East West Banking Corp. (EWBC) accounted for bulk of revenues at 54 percent, followed by real estate operations primarily from Filinvest Land, Inc. (FLI) and Filinvest Alabang Inc. (FAI) at 43 percent. The balance of three percent came from sugar operations.

Revenues from real estate operations amounted to P1.2 billion with sale of lots, condominium and residential units, and club shares accounting for P1.1 billion or an increase of 12 percent from the year- earlier level. Mall and rental revenues rose 11 percent to P366 million.

EWBC registered revenues of P1.63 billion, 92 percent higher than the P846 million recorded a year earlier. The growth is largely attributed to the 50 percent rise in interest income to P1.36 billion. The results include the operations of newly acquired subsidiaries AIG Philam Savings Bank, Philam Auto Finance and Leasing Inc, and PFL Holdings Inc., whose mergers with EWBC were approved by regulators last year.

FDC’s listed property arm FLI reported a 14 percent growth in net earnings to P545 million as revenues expanded 11 percent to P1.58 billion.Real estate sales accounted for 68 percent of total revenues while recurring rental income generated by the company’s BPO offices and mall leasing operations accounted for 20 percent of total revenues. 

As of end-March this year, FDC’s total assets reached P163.5 billion, slightly lower than the end-2009 level of P165.6 billion, while total equity stood at P63.3 billion.