Filinvest Development Corporation Reported P9.5 Billion Net Income for 9M24

Filinvest Development Corporation (FDC) reported a net income attributable to equity holders of the parent company of P9.5 billion for the first nine months of 2024. This represented a 59% increase from the net income generated in the same period last year of P5.9 billion. For the third quarter, net income grew by 97% to P3.9 billion from P2.0 billion in the same period in 2023. The growth was broad-based, led mainly by the banking, power, and property businesses.

Total revenues and other income for the first nine months of 2024 rose by 34% versus the same period in 2023 to P86.8 billion. The increases in revenues and other income by business segment were as follows: Banking, 29% to P38.2 billion; Real estate, 27% to P21.8 billion; Power, 66% to P18.7 billion; and Hospitality, 39% to P2.9 billion.

“The net income in the first nine months of 2024 was at a record-high for comparative periods," said FDC President and CEO, Ms. Rhoda A. Huang. “The strong performance was across the Group's business segments and we look forward to sustain this growth trajectory for the balance of the year,” she added.

Banking unit EastWest Bank’s (EW) top-line growth was driven by a 17% increase in consumer loans leading to a 23% rise in net interest income. Consumer lending remained the bank’s core product, accounting for 83 percent of the total loan book. This helped push net interest margin to 8.1% versus the 7.7% recorded in the same period in 2023. Meanwhile, non-interest income grew by 39%, in line with banking transaction growth.

The Power subsidiary, FDC Utilities, Inc. (FDCUI), reported a 66% expansion in revenues and other income for the first nine months of 2024, brought about by higher energy sales from its fully contracted 405-MW plant located in Misamis Oriental in Mindanao. The significant rise in power generation and sales was made possible by the Mindanao-Visayas interconnection project that boosted demand.

FDC's Real Estate business, composed of subsidiaries Filinvest Land, Inc. (FLI), Filinvest Alabang, Inc. (FAI), and Filinvest REIT Corp. (FILRT), generated 27% higher revenues and other income versus the same period last year from higher residential sales and mall rentals.

Revenues and other income from hotel operations under Filinvest Hospitality Corporation (FHC) widened by 39% compared to the same period last year made possible by the resurgence in domestic tourism and international arrivals. This led to higher room occupancy and rates across its portfolio which includes seven hotels with 1,800 rooms, and two 18-hole golf courses situated in Filinvest Mimosa Plus Leisure City in Clark, Pampanga. FHC operates three homegrown brands, namely Crimson, Quest, and Timberland Highlands.

The Banking segment made the biggest contribution to revenues and other income in the first nine months of 2024, accounting for 44% of the conglomerate’s total. This was followed by Real Estate and Power with 25% and 22%, respectively. Hospitality accounted for 3% of the revenues, while the balance was distributed among other businesses.

The healthy revenue growth rates realized during the first nine months of 2024 translated to the following bottom-line contributions: Banking contributed P4.4 billion accounting for 38% of FDC’s net income. This was followed by Power with P3.4 billion contribution or 29%; Property business, composed of the Real Estate and Hospitality segments, added P3.1 billion equivalent to 27%; and Sugar, P658 million for 6%.

The company’s balance sheet, with total assets of P771 billion as of September 30, 2024, remained healthy, with debt-to-equity ratio of 0.74:1 providing financial capabilities for sustained strong growth. The Filinvest group has allocated a total capital expenditure budget of P26 billion, 61% of which is for real estate projects, 20% for power projects, 9% for the expansion of the hospitality business, and the balance for other businesses.
​
Filinvest Development Corp. (FDC) is a leading diversified conglomerate in the Philippines with strategic holdings in key industries such as real estate (Filinvest Land Inc., Filinvest Alabang Inc., and Filinvest REIT Corp.), banking and financial services (EastWest Bank), power generation (FDC Utilities Inc.), hotel and resort management (Filinvest Hospitality Corporation), and sugar (Pacific Sugar Holdings Corp). It is also the largest shareholder of the consortium Luzon International Premiere Airport Development Corp. (LIPAD), which operates Clark International Airport. Through its diverse businesses, FDC is a dependable partner in economic development and nation-building.