FDC posts 26% profit hike

MANILA, Philippines - Robust income from its banking and property units allowed Filinvest Development Corp. (FDC) to substantially grow its earnings in the nine months to September this year, the company said yesterday.

The investment holding firm of the Gotianun family said its nine-month consolidated net income jumped 26 percent to P4.3 billion from P3.4 billion a year ago while consolidated revenues picked up 24 percent to P25.6 billion from P20.5 billion.

“Top line performance was largely driven by its listed subsidiaries, East West Banking Corp. and Filinvest Land Inc. (FLI), which contributed 87 percent of total revenues, or 44 percent and 43 percent, respectively,” FDC said.

Specifically, EastWest reported a 28-percent increase in net income to P1.7 billion.

“Net interest income spiked 41 percent to P6.1 billion, the result of double-digit growth in lending coupled with the decline in the cost of funds,” the company said.

EastWest targets to grow its deposit base as it hits 400 branches by the first quarter next year from 337 as of end-September.

For its part, real estate unit FLI said total income and other revenue from real estate operations gained 15 percent to P11 billion.

“The growth resulted from continued robust real estate sales and steady growth in mall and rental revenues,” FLI said.

Real estate sales reached P8.3 billion, up 18 percent from last year due to higher sales of middle-income projects consisting of medium-rise buildings and high-rise buildings, increased sales of affordable house and lot units, and more sales of Filinvest Corporate City lots in Alabang, Muntinlupa, FLI said.

Mall and rental revenues picked up nine percent to P1.7 billion due to higher occupancy rates.

FDC’s sugar operations, through Pacific Sugar Holdings, recorded P4.8 billion in sales, up 76 percent from a year ago due to improvements in operational efficiency that boosted sugar milling capacity.

FDC’s hotel business through Crimson Resort and Spa at Seascapes Resort Town in Cebu and Crimson Hotel Filinvest City Manila recorded P800 million in total revenues, up 53 percent from last year.

“This was the result of both an increase in occupancy rate and an increase in room rate of Crimson Mactan as well as the addition of Crimson Alabang, which was formally launched on March 21,” FDC said.

The holding company is tapping the capital markets anew to raise P10 billion through 10-year bonds. Early this year, FDC secured $300 million in its first foray into the international bond market to finance its expansion projects.