Conglomerate Filinvest Development Corp. reported weaker first-quarter results as core businesses continued to be affected by the pandemic.
FDC said in a disclosure to the stock exchange first-quarter net income declined by 35 percent to P2 billion from P3 billion in the same period last year.
Revenues and other income also went down by 23 percent to P16.6 billion.
“The challenges brought about by the pandemic continue to persist, and we know fully well that the path to recovery will be volatile. It is worth noting however that times of crisis are also times of opportunity for strong, forward-thinking companies. We are using this time to focus on building scale while leveraging on the strong foundation and franchise we have built across our portfolio of businesses.,” said FDC president and chief executive Josephine Gotianun-Yap.
The group’s banking unit EastWest Bank delivered a net income contribution to the group of P2 billion, equivalent to 61 percent of FDC’s bottomline.
This was followed by the property business, composed of the real estate and hospitality segments, which delivered a combined P641 million or 20 percent of the total.
Its power subsidiary contributed P463 million in net income or 14 percent of the total, while the balance of 5 percent came from other business.
“Prospects for 2021 remain uncertain, but we are hopeful that the economy can bounce back once community quarantines are relaxed. We recognize that crucial to a robust economic recovery is renewed business and consumer confidence. We are supportive of efforts to open the economy while taking resolute steps to fast-track the vaccination rollout program and keep the COVID-19 caseload to the lowest level possible,” said Gotianun-Yap.
Meanwhile, GT Capital of the Ty family reported a net income of P4.1 billion, up 60 percent from P2.5 billion in the first quarter of 2020. This was driven by strong rebound from its banking and automotive businesses.
“The solid performance of Metrobank and the strong rebound in the auto business led to significant earnings growth for GT Capital in the first quarter. Notwithstanding the recent surge in Covid-19 cases and the reimposition of the Enhanced Community Quarantine in March, we remain optimistic for the rest of the year,” GT Capital president Carmelo Maria Luza Bautista said.
Bautista said the faster inoculation of the general public and the re-opening of more sectors of the economy would allow GT Capital to sustain its first-quarter positive performance for the remainder of the year.
Aside from banking and automotive manufacturing, GT Capital also has investments in automotive importation, dealership and financing, property development, life and general insurance and infrastructure.