Manila–(PHStocks)–Filinvest Development Corp. (PSE: FDC) grew its top line by 11% to reach PhP38.6 billion in 2014 from PhP34.9 billion in 2013. This resulted in consolidated net income if PhP6.2 billion.
“FDC is at the tail end of a major investment cycle. Our banking subsidiary has just completed its 400 branch expansion thrust while the power subsidiary will commence operations of its 405 MW power plant by 2016. On the property front, FLI’s gross leasable area will grow by 50% by end of 2015 from investments made in the retail and BPO office sector,” said FDC President and CEO Josephine Gotianun Yap.
“We are excited by our prospects in 2015 and onwards. East West Bank’s core net interest income rose 19% to PhP 10.0 billion in the prior year. However, this was offset by a 15% increase in expenses resulting from the last phase of our branch-store expansion. East West Bank generated PhP2.1 billion in net income in 2014, a 1% increase over expansion, we are looking forward to reaping the benefits of the wider network in the coming years. We have also rolled out our new core banking IT platform. These investments are all part of our continuous customer service improvement program” added FDC Chairman Jonathan T. Gotianun.
Real estate subsidiaries Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. together with banking subsidiary EastWest Bank (EWB) drove FDC’s top line growth. These businesses accounted for 90% of revenues, with 48% coming from real estate and 42% coming from banking. Sugar and hotel operations contributed 6% and 3% of total revenues respectively.
FDC ended 2014 with stockholders’ equity at PhP89.6 billion. Total assets increased by 27% to reach PhP343.3 billion from PhP270.8 billion in the prior year. At the end of 2014, the conglomerate maintained cash of Php37.4 billion and debt of PhP75.6 billion. The resulting debt-to-equity ratio was 0.84 and net-to-debt-equity was 0.43. Debt increased from previous years largely as a result of investments made by the group’s power business.
Net income attributable to equity holders of the parent company was PhP3.7 billion, lower than the previous year, as a result of additional costs related to expansion plans.
The Filinvest Group, started by Taipan Andrew Gotianun, Sr. as a financing company for secondhand-cars in 1955, is celebrating its 60th anniversary this year but the conglomerate is still priming to reach a new peak with most of its power infrastructure projects coming into stream into the next two years.
“This year the power subsidiary, FDC Utilities, Inc. (FDCUI), will start contributing to revenues from the sale of power from our 140 MW IPPA contracts with Unified Leyte and Apo Geothermal. Construction of FDCUI’s 3 X 135 MW circulating fluidized bed power plant in Misamis Oriental is in full swing and test runs will commence this year. We expect to bear the initial fruits of our investment ing 2016,” Yap added.
This will make the FDCUI plant the biggest in Mindanao and will significantly alleviate the power shortage in that region.
In 2014, property subsidiary FLI recorded a 16% jump in net income, reaching PhP4.6 billion from PhP4.0 billion in 2013. Revenues at FLI, one of the country’s largest residential developers and BPO office providers, surged 22% to a record PhP16.9 billion on the back of strong growth in both its residential business and its office leasing operations.
FLI’s residential projects generated PhP13.2 billion in revenues, 26% more than the PhP10.5 billion posted in 2013. The firm launched PhP12.5 billion worth of residential projects in 2014. Among these were, “100 West,” an iconic mixed-use development composed of a residential tower, BPO office space and three floors of convenient shopping space, strategically located at the corner of Sen. Gil Puyat Ave. and Washington St. in Makati.
Revenues from rental assets rose PhP12.2 billion, growing 11% over the PhP2.0 billion generated in 2013. Filinvest Land is currently completing three more office buildings, “Filinvest Two” and “Filinvest Three,” in Northgate Cyberzone in Filinvest City and “Filinvest Cebu Cyberzone Tower One” in Cebu.
EastWest ended the year with 405 branches, up from 347 at the end of 2013.
The contribution from hotel operations continued to grow, with revenues rising 13% to PhP1.1 billion, as a result of rising occupancy and room rates. The newest jewel of the group, under the luxury Crimson brand, is currently under construction in Boracay.