FILINVEST Development Corp. (FDC) posted a slightly lower first-half (H1) net income as a sharp drop in profit from its banking business offset stronger contributions from the property and hospitality segments.
In a disclosure on Thursday, the company said net income attributable to equity holders of the parent company slipped to P7.36 billion in the first six months of 2026 from P7.43 billion a year earlier.This came despite a 10-percent growth in total revenues and other income to P64.3 billion from P58.5 billion.“Filinvest Group’s diversified portfolio enabled us to generate healthy revenue growth and steady profit performance despite very challenging economic conditions,” FDC President and CEO Rhoda Huang said.Banking remained the largest revenue driver, contributing revenue and other income of P33.5 billion, up 18 percent from P28.4 billion last year. Net income from this segment, however, fell 23 percent on higher provisions for probable losses amid macroeconomic and geopolitical uncertainties.EastWest Bank, FDC’s banking arm, reported stand-alone net income of P3.4 billion while net interest income increased 21 percent to P23.1 billion and noninterest income rose 14 percent to P5.3 billion.Pre-provision operating profit climbed 30 percent to P14.4 billion as revenue growth outpaced the increase in expenses. Consumer lending accounted for 85 percent of the bank’s total loan portfolio, helping lift net interest margin to 8.7 percent from 8.3 percent a year earlier.Banking accounted for P2.5 billion, or 29 percent, of FDC’s net income in the period, down from P3.2 billion a year earlier.The group’s property business, which combines real estate and hospitality, provided earnings support, contributing P2.9 billion to FDC’s net income, up from P1.7 billion the previous year.Real estate revenues increased 16 percent to P14.7 billion from P13.8 billion, driven by commercial lot and residential sales, with residential sales growing 23 percent from a year ago.Hospitality revenues and other income were relatively steady at P2.2 billion, but net income was 35 percent higher, supported by higher average room rates, and stronger food and beverage contributions.Power revenues declined 5 percent to P9.1 billion from P9.6 billion, mainly because of expiring bilateral contracts and lower contracted demand. Power contributed P2.6 billion to FDC’s net income in the first half.Sugar contributed P682 million, while the property business accounted for P2.9 billion, or 33 percent.The group’s consolidated net income also declined to P9 billion from P9.2 billion the previous year.The company reported total assets of P938 billion as of end-June, up from P829 billion a year earlier, while its debt-to-equity ratio improved to 0.66 times from 0.72 times.“We expect steady performance to continue in the months ahead, despite persistent macroeconomic challenges and remain confident in a strong medium- to long-term recovery,” Huang said.On Thursday, shares of the company dropped P0.10, or 2.78 percent, to close at P3.50 each.
