Filinvest Development Corporation's Q12024 Net Income Grows by 36% to P2.9 Billion

In the first quarter of 2024, Filinvest Development Corporation (FDC) reported a 36% increase in net income attributable to equity holders of the parent company, from P2.2 billion to P2.9 billion, compared to the same period the previous year. Consolidated net income increased by 27% to P3.7 billion. Strong contributions from the banking, power, and property businesses enabled the rise. While costs and expenses increased by 25% to P21.6 billion, total sales and other income increased by 28% to P26.4 billion.

36% of FDC's earnings in the first quarter of 2024 came from banking and financial services, which brought in P1.2 billion in net income for the company. The power subsidiary came next, making up 29% of the total with P1.0 billion in net income. Real estate and hospitality combined accounted for P741 million, or 21% of the total, in the property business. Other businesses accounted for the remaining 14% of the total.

“We are pleased with the strong financial results during the first quarter. We will push to maintain the momentum as we strive towards the fulfillment of our long-term goal of sustained growth in earnings,” said FDC President and CEO, Ms. Rhoda A. Huang.

EastWest Bank (EW) delivered a net income contribution to the group of P1.2 billion in the first quarter of 2024, 6% higher than the same period last year. On a standalone basis, net interest income of EW increased by 34% to P8.2 billion, supported by the 19% expansion in lending activities led by credit cards, auto, personal, and salary loans. Consumer lending remained to be the bank’s core product as it accounted for 81% of the total loan book, and this helped push net interest margin to 8.1%. Complementing revenues were higher non-interest income that grew 9% to P1.8 billion, in line with banking transaction growth. Return on equity (ROE) was reported at 10.0% while total assets ended at P480.4 billion. EW continued to deploy excess liquidity towards high-yielding consumer loans and long-term securities. 

The power subsidiary, FDC Utilities, Inc. (FDCUI), reported a 65% surge in net income to P1.0 billion in the first three months of 2024. The growth was driven by higher-than-expected energy sales volume as well as increased operational plant efficiency. All units of its 405MW FDC Misamis plant were fully contracted, facilitated by the energization of the Mindanao-Visayas interconnection project in the second half of 2023. Its plant is located in Misamis Oriental in Mindanao that services a diverse customer base composed of mostly triple A distribution cooperatives from the VisMin region, and a Retail Electricity supplier. FDCUI also has solar energy solutions through a 60:40 joint venture with Engie, one of the largest power generators and distributors in the world. The Filinvest group likewise has an interest in water through FDC Water Utilities Inc. (FDCWI), a wholly owned subsidiary of FDCUI.

In the first three months of 2024, FDC's real estate division—which consists of listed subsidiaries Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. (FAI)—contributed P704 million in net income to the company, a 17% increase over the P600 million in the same time the previous year. The robust performance of medium-rise condominiums and the 24% increase in residential sales to P3.6 billion as a result of its projects' quicker construction were the main drivers of the growth. Mall occupancy and foot traffic increased, resulting in a 4% increase in leasing and mall income to P2.0 billion.

Hotel businesses under Filinvest Hospitality Corporation (FHC) increased FDC net income by P37 million. The rise in occupancy and room rates at all of the operating properties—Crimson in Alabang, Boracay, and Mactan; Quest in Cebu, Clark, and Tagaytay; and Timberland Highlands in Rizal—was bolstered by the revival of domestic tourism. Under the Crimson and Quest brands, FHC's portfolio comprises seven hotels located in seven cities and five regions, totaling about 1,800 rooms. Additionally, it features two world-class 18-hole golf courses situated in Mimosa, Clark.

With total assets of P746.1 billion at the end of the first quarter of 2024, the company's balance sheet remained sound. With a long-term debt-to-equity ratio of 0.78:1, FDC has the financial capacity to continue its rapid expansion in the coming years. The Filinvest group has set aside P25 billion for capital expenditures overall this year, with 60% going toward the creation of real estate projects. An additional fifteen percent of the funds will be allocated to renewable energy projects, fifteen percent to the growth of the hospitality industry, and the remaining portion to digitalization and other ventures.

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. 

​FDC aims to grow this legacy of success by continuing to strengthen its position in the industries where it competes and embarking on new endeavors that will bolster its role in nation building.