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Filinvest Development hikes profits by 26% in H1

Posted on July 11, 2011 09:17:22 PM [ BusinessWorld Online ]

HOLDING FIRM Filinvest Development Corp. grew its profits by roughly a quarter to almost P2.4 billion in the first half due to higher revenues and tighter cost management, the company said in a disclosure yesterday.
Filinvest Development said it “registered a 26% growth in net income at P2.38 billion compared to same period last year” for the period.

“The group’s earnings before interest, taxes, depreciation, and amortization hit P3.9 billion, a hefty increase of 33% from same time last year,” it added.

This, as total revenues hit P10.58 billion in the first half, 21% higher than the P8.7 billion last year.

Operating expenses, however, rose by just 3% despite the improved sales performance, the company said without providing figures.

The Gotianun-led conglomerate operates subsidiaries East West Banking Corp., Filinvest Land, Inc., Festival Supermall, Inc., Cyberzone Properties, Inc., and Filinvest Asia Corp.

Its real estate business reportedly contributed P5.9 billion to the total revenues, up by 51% from P2.4 billion last year.

Revenues came from sales of lots, condominium and residential units and club shares on top of mall and rental revenues from its retail and business process outsourcing firms.

East West Bank, representing the conglomerate’s banking arm, for its part posted a 3.9% hike in operating income to P3.4 billion in the first half from P3.3 billion in the same period last year.

From 76 branches in 2007, East West Bank has expanded its network to 116. Last year, the company opened 28 new branches to end 2010 at 113.

“The growth in operating income largely came from core earnings like net interest income and fee-based income, as trading gains declined year on year,” Filinvest Development said.

Net interest income jumped by 7.3% to P2.3 billion because of brisk lending and managed low cost from deposit taking activities.

Trading income reached P208.3 million in the first semester, the company said, without elaborating.

Other income similarly rose by 7.6% to P840.3 million while total operating expenses dropped by 2.7% to P2.3 billion in the first six months.

Filinvest Development shares were unchanged at P5.13 each yesterday. -- Neil Jerome C. Morales

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