TYCOON ANDREW GOTIANUNS’ holding firm Filinvest Development Corp. grew its first-quarter net profit by 67 percent year-on-year to P952 million on higher revenues generated by its banking and property units.
FDC’s banking unit East West Banking Corp. boosted its first-quarter net income by 92 percent to P1.63 billion from a year ago due to the double-digit growth in interest income. The first-quarter results also reflected the increase in business scale following the bank’s acquisition of the AIG group’s consumer finance units bundled under Philam Savings Bank.
Flagship property development arm Filinvest Land Inc. also grew its net profit for the quarter by 14 percent to P545 million from a year ago on strong real estate operations.
East West Bank contributed the bulk of FDC’s net revenues at 54 percent, followed by real estate operations, primarily from FLI and Filinvest Alabang Inc., at 43 percent. The balance of 3 percent was from the group’s sugar operations.
On the other hand, bulk of group-wide net income was attributed to real estate operations at 51 percent, followed by banking and financial services at 47 percent, and sugar operations, 2 percent.
As of end-March, FDC’s total assets reached P163.5 billion, slightly lower than the end-2009 level of P165.6 billion.
Listed property arm Filinvest Land posted an 11-percent growth in total revenues to P1.58 billion. Real estate sales accounted for 68 percent of total revenues while recurring rental income generated by the company’s business process outsourcing offices and mall leasing operations accounted for 20 percent of total revenues.
Despite the continuing global economic crisis, FDC said demand for Filinvest Land’s core business of residential housing for the socialized, affordable and middle-income markets continued to remain steady. Total residential sales reservations for the first three months posted a 26-percent growth to P2.36 billion.
Meanwhile, East West Bank’s growth was attributed to the 50-percent rise in interest income to P1.36 billion year-on-year.
Source: Inquirer
For details on the Real Estate Service Act > www.ra9646.com
