FLI chalks up 6.2-B net income in 2014

Filinvest Development Corporation (FDC) posted a 4.6 percent drop in consolidated net income to 6.2 billion last year from the 6.5 billion earned in 2013 even as its top line by 11 percent to reach 38.6 billion in 2014 from 34.9 billion.

“FDC is at the tail end of a major investment cycle. Our banking subsidiary has just completed its 400 branch expansion thrust while the power subsidiary will commence operations of its 405 MW power plant by 2016,” said FDC president Josephine Gotianun Yap in a disclosure to the Philippine Stock Exchange.

On the property front, Yap said FLI’s gross leasable area will grow by 50 percent by end of 2015 from investments made in the retail and business process outsourcing office sector.

“We are excited by our prospects in 2015 and onwards. East West Bank’s core net interest income rose 19 percent to 10.0 billion from 8.4 billion in the prior year,” said FDC chairman Jonathan T. Gotianun.

However, he said this was offset by a 15 percent increase in expenses resulting from the last phase of its branch- store expansion. EastWest Bank generated 2.1 billion in net income in 2014, a 1 percent increase over 2013.

FDC’s net income attributable to equity holders of the parent company was

3.7 billion, lower than the previous year, as a result of additional costs related to expansion plans.

The Filinvest Group is still priming to reach a new peak with most of its power infrastructure projects coming into stream in the next two years.

“This year the power subsidiary, FDC Utilities, Inc. (FDCUI), will start contributing to revenues from the sale of power from our 140 MW IPPA contracts with Unified Leyte and Apo Geothermal. Construction of FDCUI’s 3 X 135 MW circulating fluidized bed power plant in Misamis Oriental is in full swing and test runs will commence this year. We expect to bear the initial fruits of our investment in 2016,” Yap said.

In 2014, Filinvest Land Inc. recorded a 16 percent jump in net income to 4.6 billion from 4.0 billion in 2013. Revenues surged 22 percent to a record 16.9 billion on the back of strong growth in both its residential business and its office leasing operations.