Banking, property units boost Filinvest 2016 profit
Gotianun-led Filinvest Development Corp. grew its net profit last year by 21 percent to P8.5 billion on higher earnings contribution from its banking and property businesses.
FDC posted a 19-percent increase in revenue to P58.6 billion,contributed mainly by the banking (41 percent) and real estate (39 percent) units. The power, sugar and hotel businesses contributed 13 percent, 4 percent and 3 percent, respectively.
Banking subsidiary East West Bank grew its net income last year by 70 percent to P3.4 billion while the property group—including listed subsidiary Filinvest Land Inc. (FLI), Filinvest Alabang Inc. and the hotel group—posted an 8-percent increase in revenue to P24.2 billion. This resulted in a net income of P6.8 billion for the property business, or a 5- percent increase.
FDC Utilities Inc. completed its 3 x 135-megawatt clean coal power plant in Villanueva, Misamis Oriental, on schedule before the end of 2016, opening up a new revenue stream for the group.
“We were excited to start supplying much-needed electricity to the Mindanao grid. This will not be immediately reflected in the revenues however, since commercial operations started toward the end of the year,” Josephine Gotianun-Yap, FDC chief executive officer and president, said in a press statement.
On the banking business, EastWest grew its loan portfolio by 29 percent to P202 billion, led by the 51 percent increase in consumer loans. This expansion was supported by a 30 percent increase in deposits, mainly from low-cost deposits.
FDC chair Jonathan Gotianun said: “2016 shows the early results of our expansion program that started in 2012. The bank started an expansion program in 2012 that grew its store (branch) network almost three times to 445, including its rural bank subsidiary. —DORIS DUMLAO-ABADILLA