Filinvest Development Corp. (FDC) chalked up a net income of P5.9 billion in the first nine months of 2023, up 57 percent from P3.8 billion in the same period last year on continued recovery of its business units.
FDC said in a disclosure to the stock exchange Wednesday its nine-month consolidated revenues rose 26.3 percent to P64.6 billion, surpassing the pre-pandemic level of P63 billion in 2019.
The banking segment accounted for the bulk of the income contributions at 45.2 percent, followed by the property business, consisting of real estate and hospitality operations at 34.1 percent of the total.
The power and utility and sugar businesses accounted for the remaining 16.1 percent and 4.6 percent of total, respectively.
“We are pleased to report the strong performance of our portfolio with an impressive broad-based growth in revenues and profit across all our business segments in banking, real estate, hotels, power and sugar despite the challenges of high interest and inflation rates. With enhanced business strategies and execution, and a resilient organization, we look forward to sustaining, if not accelerating, our growth in 2024 and the years ahead,” said FDC president and chief executive Chiqui Huang.
Net income of East West Bank grew 59 percent growth to P4.7 billion in the first nine months of 2023 as revenues rose 33 percent on higher interest income and the build-up of high-yielding fixed income securities.
Real Estate group saw a 22-percent increase in net income, while overall revenues grew 15 percent, driven by the growth of both residential and mall revenues.
Net income of the power business inched up by 1 percent despite an increase of 19 in revenues due to the significant increase in the cost of sales which was primarily fuel prices.
Volumes, however, are expected to improve moving forward as the benefits from the Mindanao-Visayas grid connection start to bear fruit, it said.
Hospitality revenues increased 53 percent on higher occupancy rates and average room rates across the seven hotel properties with the continued recovery of travel and tourism albeit mostly domestic.
The Filinvest group earmarked a capital expenditure budget of P35 billion this year, of which about half is slated for the real estate and hospitality businesses.
The balance will go to investments in new ventures including renewables, water and other urban solutions.