Filinvest earns 21% more in 2016

Gotianun-led Filinvest Development Corp. reported a 21 percent hike in its net income last year to P8.5 billion, mainly driven by higher contributions from its banking subsidiary.

“Growth was achieved on the back of a 19 percent increase in revenues to P58.6 billion from P49.3 billion,” FDC said in a statement.

EastWest Bank posted a net income of P3.4 billion, 70 percent higher than the year before as revenues expanded 34 percent to P22 billion or 41 percent of FDC’s total revenues.

“EastWest grew its loan portfolio by 29 percent to P202 billion, led by the 51 percent increase in consumer loans backed by a 30 percent increase in deposits, mainly from lowcost deposits,” FDC said.

FDC chairman Jonathan Gotianun said the bank’s financial growth was driven by the results of its expansion plans, which began in 2012 and grew branch network by three-fold to 445.

“We are leveraging the expanded branch network not only to strengthen our core lending business, but also to diversify our sources of income with our new joint venture and subsidiaries,” Gotianun said.

Meanwhile, the property group, composed of Filinvest Land Inc., Filinvest Alabang Inc. and the hotel business also made significant contributions, raking in P24.2 billion in revenues or an increase of eight percent year on year. This comprised 39 percent of FDC’s total revenues.

The group attributed the growth to its recurring income portfolio, composed of office and retail developments.

“FLI completed three new office buildings in 2015, which began to generate revenues in 2016,” FDC said.

The listed holding firm said its power and sugar subsidiaries also contributed to the revenue growth, accounting for 13 percent and 4 percent of the revenues, respectively.

Subsidiary FDC Utilities Inc. completed its 3 x 135 MW clean coal power plant in Villanueva, Misamis Oriental on schedule.

“We were excited to start supplying much-needed electricity to the Mindanao grid,” said FDC president Josephine Gotianun-Yap.

“This will not be immediately reflected in the revenues however, since commercial operations started towards the end of the year,” she added.