THE Filinvest Development Corp. (FDC) reported consolidated net income of P7 billion for full-year 2015, 13 percent higher than in 2014.
The group generated P49.3 billion of revenues, or 28 percent, 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 percent, continued to come from the real-estate business. Financial services and banking contributed 37 percent, while power generation delivered 13 percent of revenues. The balance came from sugar operations (5 percent) and hotel operations (2 percent).
Real-estate subsidiaries Filinvest Land Inc. (FLI) and Filinvest Alabang Inc. (FAI) continued to deliver solid growth to the group. FLI, one of the country’s largest residential developers and business-process outsourcing office providers, saw net income increase by 11 percent to reach P5.1 billion. Consolidated revenues from FLI rose 7 percent to P18.3 billion. Recurring income from rental revenues surged 12 percent on the back of its growing portfolio of office buildings.
Year-end 2015 saw an increase of 33 percent 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 percent as the group continued to launch horizontal, midrise and high-rise projects. FAI, the developer of the 244-hectare Filinvest City, generated P1.9 billion in revenues. FAI realized record prices in 2015, which reached more than P200,000 per square meter.
Banking subsidiary EastWest Bank ended 2015 with net income of P2 billion. It continued to post a healthy 23-percent 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 percent of total customer loans, grew 38 percent to P90.8 billion, led by auto loans and personal loans. Corporate loans grew 18 percent to P66.4 billion.
The bank has been ramping up investments to grow its branch-store network, ending 2015 with 433 stores and 579 automated teller machines. “Even as we expect to realize the impact of these investments, we continue to focus on delivering products and services that will complement our existing lineup, starting with bancassurance products through our newly formed joint venture with Ageas,” FDC Chairman Jonathan Gotianun said. EastWest’s joint venture with the Belgium-based Ageas Insurance NV, EastWest Ageas Life, will begin selling life-insurance products at EastWest branch stores this quarter.
Revenues from the sugar group grew by 5 percent, while revenues from the hotel group grew by 16 percent. 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 sector,” enthused Josephine Gotianun-Yap, FDC president and CEO. “This year we are looking forward to commissioning the group’s 405 megawatt coal-fired power plant in Misamis Oriental and providing much-needed electricity to the Mindanao grid.”