Filinvest Development Corporation Grows its Net Income by 58% to P8.9 Billion in 2023

Filinvest Development Corporation (FDC) reported a net income attributable to equity holders of the parent business of P8.9 billion in 2023, 58% more than the P5.7 billion recorded the previous year, while consolidated net income reached P12.1 billion, up 46% year-on-year. The growth was led by a 31% increase in total revenues and other income from P71.1 billion in 2022 to P92.8 billion in 2023, which followed a double-digit improvement across all business segments.

Revenues and other income increased by the following business segments: banking (35%), real estate (20%), hospitality (77%), power (35%), and sugar (16%).The level of total revenues and other income of FDC in 2023 has surpassed by 8 percent the amount generated before the pandemic of 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 FDC President and CEO, Ms. Rhoda A. Huang.
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While FDC's development was broad-based, its banking, real estate, and power subsidiaries helped boost its 2023 earnings. Banking and financial services generated P4.6 billion in net income for the group, accounting for 39% of FDC's bottom line. The property industry, which includes the real estate and hotel segments, generated P3.8 billion, or 32% of the total. The power subsidiary produced P2.9 billion in net profits, or 24% of the total, with the remaining 5% coming from other operations.

On its own, banking subsidiary and publicly traded EastWest Bank (EW) had a net income of P6.1 billion in 2023, 32% higher than the previous year, owing to continued consumer loan growth and good deposit production. The high-yielding consumer lending portfolio increased by 25%, accounting for 80% of the entire credit base. The cost of money remained steady during the period, and total deposits increased by 8%. This resulted in a net interest income of P28.2 billion, a 21 percent increase, with a net interest margin (NIM) of 7.6%. Non-interest revenue was also a significant contributor to the bank in 2023, growing by 51 percent to P7.4 billion. The return on equity stood at 9.5%.
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FDC's real estate business, which includes listed subsidiaries Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. (FAI), generated P3.7 billion in net income for the company in 2023, up 31% from P2.8 billion the previous year. Residential segment revenues increased by 21% to P16.1 billion, driven by the sale and building of mid-rise condominiums (MRBs) and housing projects. Mall and rental income climbed by 14% to P7.6 billion as a result of reduced rental discounts, the reintroduction of escalation rates, and increased occupancy.
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The power subsidiary, FDC Utilities, Inc. (FDCUI), reported a net income contribution of P2.8 billion in 2023, representing a 30% increase over 2022. Revenues increased by 33% to P17.2 billion, owing to higher volume and average selling prices, driving the net income growth. All units of the 3x135MW FDC Misamis facility were completely contracted before the end of the year, aided by the completion of the Mindanao-Visayas interconnection project in the second half of 2023. Its plant is in Misamis Oriental, Mindanao, and serves a broad client base that consists primarily of regional triple-A distribution cooperatives.
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Hotel operations of Filinvest Hospitality Corporation (FHC) improved in 2023. Net income for the group was P106 million, boosted by a 48% increase in revenues to P2.9 billion in 2023. Stable domestic tourism boosted occupancy and raised average hotel rates across the seven properties. Food and beverage (F&B) revenues boosted the segment by P1.1 billion. FHC's portfolio includes around 1,800 rooms spread among seven hotels in seven cities and five regions operating under the Crimson, Quest, and Timberland Highlands brands.
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The company's balance sheet remained strong by the end of 2023, with total assets increasing by 6% to P735 billion. Debt commitments are effectively handled, with a debt-to-equity ratio of 0.74:1 and a net debt-to-equity ratio of 0.56:1.

“We look forward to sustaining the strong momentum in 2023. Our goal is to “Fast Forward Filinvest,” added Ms. Huang.

Filinvest Development Corp. (FDC) is one of the leading, stable, and diversified conglomerates in the Philippines. Through its diverse businesses, FDC has established a strong reputation as a dependable partner in economic development. FDC currently has strategic holdings in key industries such as real estate development and leasing, banking and financial services, hotel and resort management, power generation and sugar.