Capitalists And Money

Banking, power, property boost FDC Q1 income to P2.9B

FILINVEST Development Corp. (FDC) saw a 36% rise in its first-quarter (q1) attributable net income, reaching P2.9 billion from last year’s P2.2 billion, driven by gains in the banking, power, and property sectors.

First-quarter total revenue and other income improved by 28% to P26.4 billion, FDC said in a statement to the local bourse on Wednesday.

Costs and expenses surged by 25% to P21.6 billion, it added.

Banking and financial services took up 36% of the conglomerate’s first-quarter bottom line, followed by its power subsidiary at 29%.

The property business, composed of the real estate and hospitality segments, shared 21% of overall profit, while other businesses shared the remaining 14%.

“We are pleased with the strong financial results during the first quarter. We will push to maintain the momentum as we strive towards the fulfillment of our long-term goal of sustained growth in earnings,” FDC President and Chief Executive Officer Rhoda A. Huang said.

For the banking business, East West Banking Corp. recorded a 6% increase in net income contribution to P1.2 billion. Net interest income rose by 34% to P8.2 billion, led by the 19% expansion in lending activities led by credit cards, auto, personal, and salary loans.

Consumer lending was the bank’s core product as it took up 81% of the total loan book, pushing net interest margin to 8.1%.

On the power segment, FDC Utilities, Inc. saw a 65% jump in net income to P1 billion on higher-than-expected energy sales volume and increased operational plant efficiency.

All units of its 405-megawatt Misamis Oriental plant were fully contracted, facilitated by the energization of the Mindanao-Visayas interconnection project in the second half of 2023.

For the real estate business, Filinvest Land, Inc. and Filinvest Alabang, Inc. recorded 17% increase in income contribution to P704 million as residential sales jumped by 24% to P3.6 billion.

The surge in residential sales came from accelerated construction progress of the projects and the strong performance of medium-rise condominiums. Mall and rental revenues improved by 4% to P2 billion led by higher mall occupancy and foot traffic.

Meanwhile, hotel operations under Filinvest Hospitality Corp. (FHC) contributed P37 million to the conglomerate’s first quarter net income.

FDC said that earnings came from the recovery of domestic tourism supported the increase in occupancy and room rates across operating properties such as Crimson in Alabang, Boracay, and Mactan; Quest in Cebu, Clark, and Tagaytay; and Timberland Highlands in Rizal.

FHC has approximately 1,800 rooms across seven hotels in seven cities and five regions under the Crimson and Quest brands. It also has two 18-hole golf courses situated in Mimosa, Clark.

For 2024, FDC has earmarked P25 billion as its capital expenditure budget, of which 60% will go to real estate development.

Another 15% will be used to pursue renewable energy projects, 15% for the expansion of the hospitality business, and the balance for digitalization and other businesses.

On Wednesday, FDC stocks dropped by 0.17% or one centavo to P5.79 per share. — Revin Mikhael D. Ochave