Filinvest Development Corporation (FDC), the investment holding company of the Gotianun family, expects its profits to reach or exceed the pre-pandemic (2019) level this year in line with the domestic economy’s continued growth. 

In an interview, FDC President and CEO Rhoda A. Huang said that, in keeping with their five-year plan, they are targeting at least a 20 percent annual growth in net income this year from the P12.1 billion reported for 2023.

“Honestly, I think the (prospects in 2024) are good. When you look at the controlled inflation, interest rates coming in, there is a drive in terms of a consumer-led economy… I think it’s very positive,” she noted.

Huang added that, “We’re well positioned for banking (EastWest Bank) and real estate (Filinvest Land Inc. and Filinvest Alabang Inc.) notwithstanding high interest rates.”

She explained that, despite prevailing high interest rates, FLI has still shown the ability to sell its inventories and rack up revenues because there is still a shortfall in housing, particularly in the low to medium income segments.

FLI continues to do well in this niche which consists mainly of houses and condominium units priced below P3.6 million each as these remain affordable and have access to financing.

“We’re really looking at mid-rise (buildings) in terms of township development. So there are clusters (of mid-rise buildings) for this purpose,” Huang said.

She said earlier that FDC expects to sustain the strong performance it posted in 2023 when attributable net income jumped 58 percent to P8.9 billion last year from the P5.7 billion earned in 2022.

Reported consolidated net income reached P12.1 billion, rising by 46 percent year-on-year.

“The growth was driven by a 31 percent increase in total revenues and other income from P71.1 billion in 2022 to P92.8 billion in 2023 following a double-digit improvement across all business segments,” FDC said.

The increase in revenues and other income by business segment were as follows: banking, 35 percent; real estate, 20 percent; hospitality, 77 percent; power, 35 percent; and sugar, 16 percent.

The level of total revenues and other income of FDC in 2023 has surpassed by eight percent the amount generated before the pandemic which amounted to P84.6 billion in 2019.

“This past operating year was marked by robust growth in all our business lines. The key to our success was a renewed focus on the fundamentals of our business and staying true to our key strategic imperatives and reliance on our core strengths as an organization,” said Huang.

She added that, “We look forward to sustaining the strong momentum in 2023. Our goal is to ‘Fast Forward Filinvest'.”

While growth was broad-based, the banking, real estate and power subsidiaries bolstered FDC’s 2023 results.

Banking and financial services delivered a net income contribution to the group of P4.6 billion, equivalent to 39 percent of FDC’s bottom line.

The property business, composed of the real estate and hospitality segments, delivered a combined P3.8 billion or 32 percent of total.

The power subsidiary contributed P2.9 billion in net income or 24 percent of total, while the balance of five percent came from other businesses.

On a stand-alone basis, EastWest Bank (EW) delivered a net income of P6.1 billion in 2023, or 32 percent higher than the previous year on sustained consumer loan growth and strong deposit generation.

FDC’s real estate business, comprised of listed subsidiary Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. (FAI), contributed P3.7 billion in net income to the group in 2023, 31 percent higher than the P2.8 billion in the previous year.

The power subsidiary, FDC Utilities, Inc. (FDCUI), reported a net income contribution of P2.8 billion in 2023 which is equivalent to a 30 percent growth from 2022.

The net income growth was on the back of revenues that rose by 33 percent to P17.2 billion, driven by higher volume and average selling prices.

Hotel operations under Filinvest Hospitality Corporation (FHC) rebounded in 2023 with net income to the group reaching P106 million, buoyed by the 48 percent growth in revenues to P2.9 billion in 2023.

Stable domestic tourism propped up occupancy and increased average room rates across the seven properties. Revenues from food and beverage (F&B) added P1.1 billion to the segment.