FDC income jumps on banking, property gains

Filinvest Development Corporation (FDC), the Gotianunled conglomerate, reported a robust 19 percent rise in net income to R7.3 billion for the first nine months of 2017 as group revenues rose 15 to R48.4 billion from R42.0 billion.

The lion’s share of revenue was delivered by banking (43 percent), followed by property (38 percent). Power and sugar contributed 15 percent and 4 percent of revenues respectively.

Banking subsidiary EastWest Bank reported September yearto-date net income of R3.7 billion, soaring 60 percent over the same period of the previous year.

“EastWest’s higher income is mainly due to improving productivity and lower loan provisions despite higher coverage due to improved quality of its loan portfolio. These more than offset the lower trading revenues and substantial increase in taxes,” FDC Chairman Jonathan T. Gotianun noted.

Property subsidiary Filinvest Land, Inc. (FLI) posted net income of R3.7 billion for the first nine months of 2017, 7 percent higher than last year.

FLI continues to launch residential projects that address the needs of the affordable and middle-income markets, which remain underserved.

“We expect residential revenues to be stable. At the same time, we are positive about the company’s prospects for growth as our new office buildings and retail developments are taken up by tenants,” said FDC President and CEO Josephine Gotianun-Yap.

The group has been continuously working on its projects in the Clark corridor. FLI has a joint venture with the Bases Conversion and Development Authority to develop 288 hectares of Clark Green City into a mixed-use township with an industrial park anchor.

In addition, FDC and FLI together have a joint venture with the Clark Development Corporation that will redevelop the 203hectare Filinvest Mimosa+ into an integrated leisure township. Construction has begun on the area’s first office building, Cyberzone Mimosa 1, which is expected to be turned over in 2017.

The group’s hotel arm has taken over the management of the estate’s existing facilities. These have been rebranded as Quest+ Hotel and Conference Center-Clark (QHCC) and Mimosa Golf-Clark. (JAL)