Filinvest Group 2015 Net Income Surges to Php7B

Taguig—(PHStocks)—The Filinvest Development Corp. (PSE: FDC) reported consolidated net income of PhP7 billion for full year 2015, 13% higher than in 2014. The group generated PhP49.3 billion of revenues, or 28% more than the previous year, partly due to the initial recognition of electricity sales from its power subsidiary FDC Utilities Inc. (FDCUI) as well as increased sales in its real estate operations. FDCUI saw its first significant revenue stream in 2015, as it recognized the sale of power from its Independent Power Producer Administrator contracts with Unified Leyte Geothermal Plant and Apo Geothermal Power Plant.

The bulk of revenues, or 43%, continued to come from the real estate business. Financial services and banking contributed 37% while power generation delivered 13% of revenues. The balance came from sugar operations (5%) and hotel operations (2%).

Real estates subsidiary Filinvest Land Inc. (PSE: FLI) and Filinvest Alabang Inc. (FAI) continued to deliver solid growth to the group. FLI, one of the country’s largest residential developers and BPO office provider, saw net income increase by 11% to reach PhP5.1 billion. Consolidated revenues from FLI rose 7% to PhP18.3 billion. Recurring income from rental revenues surged 12% on the back of its growing porfolio of office buildings. Year-end 2015 saw an increase of 33% in gross leasable area of its office rental portfolio. These new buildings are expected to contribute to revenues in 2016. Revenues from real estate development grew by a steady 6% as the group continued to launch horizontal, mid-rise and high-rise projects. FAI, the developer of the 244-hectare Filinvest City, generated PhP1.9 billion in revenues. FAI realized record prices in 2015, which reached more than PhP200,000 per square meter.

Banking subsidiary East West Banking Corp. (PSE: EW) ended 2015 with net income of PhP2 billion. It continued to post a healthy 23% growth in its core revenues (net revenues ex-trading) driven mainly by net interest income. This was the result of the expansion of its loan portfolio. Consumer loans, which account for 58% of total consumer loans, grew 38% to PhP90.8 Billion led by auto loans. Corporate loans grew 18% to PhP66.4 billion.

The bank has been ramping up investments to grow its branch-store network, ending 2015 with 433 stores and 579 ATMs. “Even as we expect to realized the impact of these investments, we continue to focus on delivering products and services that will complement our existing line-up, starting with bancassurance products through our newly formed joint venture with Ageas,” said FDC Chairman Jonathan Gotianun. EastWest’s joint venture with the Belgium-based Ageas Insurance NV, EatWest Ageas Life, will begin selling life insurance products at EastWest brach stores this quarter.

Revenues from the sugar group grew 5% while revenues from the hotel group grew 16%. The group is poised to launch its newest hotel later this year, Crimson Resort and Spa in Boracay.

“We have much to look forward to in 2016, as we expand the FDC portfolio with our investments in the power sectors,” enthused Josephine Gotianun-Yap, FDC President and CEO. “This year, we are looking forward to commissioning the group’s 405MW coal-fired power plant in Misamis Oriental and providing much-needed electricity to the Mindanao grid.”