FDC nets P7B profit in 2015

GOTIANUN-LED conglomerate Filinvest Development Corp. (FDC) grew its net profit last year by 13 percent to P7 billion, driven by growth in its real estate and power businesses.

The firm’s revenues rose by 28 percent to P49.3 billion partly from electricity sales of power subsidiary FDC Utilities Inc. and mainly from its real estate operations.

For FDC Utilities, the first significant revenue stream was recognized in 2015 with the sale of power coming from its independent power producer administrator contracts with Unified Leyte Geothermal Plant and Apo Geothermal Power Plant.

Bulk of FDC’s revenues was contributed by the real estate business, accounting for 43 percent. Financial services and banking contributed 37 percent, while power generation delivered 13 percent of revenues.

The balance came from sugar (5 percent) and hotel (2 percent) operations.

Property arm Filinvest Land Inc. earlier reported an 11 percent rise in 2015 net profit to P5.1 billion. Another property unit, Filinvest Alabang Inc., generated P1.9 billion in revenues.

Banking arm East West Bank ended last year with a net profit of P2 billion, flat from the level seen in 2014.

The bank’s core revenues went up by 23 percent, which can be attributed to net interest income arising from the expansion of its loan portfolio.  Consumer loans, which accounted for 58 percent of total loans, went up by 38 percent to P90.8 billion.  Corporate loans, meanwhile, expanded by 18 percent to P66.4 billion.

“Even as we expect to realize the impact of these investments, we continue to focus on delivering products and services that complement our existing line-up, starting with bancassurance products through our newly formed joint venture with Ageas,” FDC chair Jonathan Gotianun said.

EastWest Ageas Life, the joint venture with Belgium-based Ageas Insurance NV, would begin selling life insurance products this quarter.