Filinvest Development Corporation (FDC), the holding company of the Gotianun Group, reported a 59 percent jump in attributable net income to P9.5 billion in the first nine months of 2024 from the P5.9 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said that, for the third quarter, net income surged 97 percent to P3.9 billion from P2.0 billion in the same period in 2023.
Filinvest said, “the growth was broad-based, led mainly by the banking, power, and property businesses.”
Total revenues and other income for the first nine months of 2024 rose by 34 percent versus the same period in 2023 to P86.8 billion.
The increases in revenues and other income by business segment were as follows: banking, 29 percent to P38.2 billion; real estate, 27 percent to P21.8 billion; power, 66 percent to P18.7 billion; and hospitality, 39 percent to P2.9 billion.
“The net income in the first nine months of 2024 was at a record-high for comparative periods," said FDC President and CEO Rhoda A. Huang.
She added that “the strong performance was across the Group's business segments and we look forward to sustain this growth trajectory for the balance of the year.”
Banking unit EastWest Bank’s (EW) top-line growth was driven by a 17 percent increase in consumer loans leading to a 23 percent rise in net interest income.
Power subsidiary FDC Utilities, Inc. (FDCUI) reported a 66 percent expansion in revenues and other income for the first nine months of 2024, brought about by higher energy sales from its fully contracted 405-MW plant located in Misamis Oriental in Mindanao.
FDC's Real Estate business, composed of subsidiaries Filinvest Land Inc. (FLI), Filinvest Alabang Inc. (FAI), and Filinvest REIT Corp. (FILRT), generated 27 percent higher revenues and other income versus the same period last year from higher residential sales and mall rentals.
Revenues and other income from hotel operations under Filinvest Hospitality Corporation (FHC) widened by 39 percent compared to the same period last year made possible by the resurgence in domestic tourism and international arrivals.
This led to higher room occupancy and rates across its portfolio which includes seven hotels with 1,800 rooms, and two 18-hole golf courses situated in Filinvest Mimosa Plus Leisure City in Clark, Pampanga. FHC operates three homegrown brands, namely Crimson, Quest, and Timberland Highlands.
The banking segment made the biggest contribution to revenues and other income in the first nine months of 2024, accounting for 44 percent of the conglomerate’s total.
This was followed by real estate and power with 25 percent and 22 percent, respectively. Hospitality accounted for three percent of the revenues, while the balance was distributed among other businesses.
The healthy revenue growth rates realized during the first nine months of 2024 translated to the following bottom-line contributions: banking contributed P4.4 billion accounting for 38 percent of FDC’s net income.
This was followed by power with P3.4 billion contribution or 29 percent; property business, composed of the real estate and hospitality segments, added P3.1 billion equivalent to 27 percent; and sugar, P658 million for six percent.
The Filinvest group has allocated a total capital expenditure budget of P26 billion, 61 percent of which is for real estate projects, 20 percent for power projects, nine percent for the expansion of the hospitality business, and the balance for other businesses.