Filinvest nets P8.5 billion in 2020

Gotianun-led Filinvest Development Corp. (FDC) on Monday reported an attributable profit of P8.5 billion in 2020, a 29-percent decline from P12 billion in 2019.

*_{Filinvest City in Alabang is one of the most visible real estate projects of Gotianun-led Filinvest Development Corp. THE MANILA TIMES FILE PHOTO}*

The company’s consolidated net income likewise dipped 28 percent to P11.5 billion year-on-year.

Filinvest said its banking subsidiary, EastWest Bank, led the firm’s full-year net income as it contributed P6.4 billion or 46 percent of the bottomline.

The property segment followed with a contribution of 38 percent or P5.3 billion and power business at 14 percent or P1.9 billion in net income.

Filinvest said the growth posted by the banking business was offset by the contraction of its property business recorded resulting in revenues and other income slipping by 15 percent.

“Coming from a landmark year in 2019, the Covid-19 (coronavirus disease 2019) pandemic brought an unexpected pause to our 2020 plans. We then shifted our gears in our business operations and quickly adjusted and innovated to adapt to the circumstances,” FDC President and Chief Executive Officer Josephine Gotianun-Yap was quoted as saying.

“The results underscore our belief that the company stands on solid foundations and strong business fundamentals and that we can weather the challenges posed by this crisis,” Gotianun-Yap added.

Filinvest said EastWest’s net income contribution to the group is 4-percent higher than its P6.2 billion in 2019 amid higher trading gains and margins from the low-interest rate environment, which lowered funding costs.

The P6-billion contribution of its real estate business, meanwhile, was 29-percent weaker year-on-year as its residential segment saw lower sales take-up, completion delays and delayed real estate sales recognition.

Its rental revenues also slipped 11 percent to P6.7 billion as the improvement of office leasing was offset by the decline in retail mall revenues.

The earnings of FDC Utilities Inc. went down by 23 percent to P1.9 billion last year from P2.5 billion in 2019, while its revenues shed 17 percent to P8.5 billion as lower demand prompted volume to contract by 24 percent.

Filinvest Hospitality Corp., on the other hand, incurred a net loss of P731 million last year, while its revenues plunged by 63 percent to P1.2 billion amid drop in occupancy rates across its properties.

Shares of Filinvest were up 19 centavos or 2.24 percent on Monday to close at P8.69 each.

Article and Photo originally posted by Manila Times last April 13, 2021 and written by Faye Almazan.