Gotianun-led Filinvest Development Corp. (FDC) grew its nine-month attributable net profit by 3 percent year-on-year to P8.9 billion as higher earnings contribution from the banking and sugar businesses cushioned the impact of a prolonged coronavirus pandemic.
For the third quarter alone, FDC’s attributable net profit stood at about P1.7 billion, down by 40 percent year-on-year and also lower by 59.5 percent from the bottom line in the previous quarter.
“We are encouraged by improvements in the quarter-on-quarter performance of residential revenues, which saw a jump of 47 percent in the third quarter compared to the second quarter of 2020. Together with the V-shape recovery in option sales, this signifies a turnaround as government restrictions have started to ease,” FDC president and CEO Josephine Gotianun-Yap said in a statement.
“Our power subsidiary has also been stable and gradually picking up to prepandemic levels. Overall, we are confident that our balanced portfolio can withstand the current crisis and we are prepared to take advantage of opportunities when the current situation turns around,” she added.
Higher revenue contribution from its banking subsidiary, East West Bank, combined with lower direct costs shored up FDC’s earnings. Cost control measures, particularly the decline in direct costs by 36 percent to P15.6 billion, offset the 9-percent drop in total revenue and other income to P57.1 billion and the 18-percent increase in operating expenses to P28.8 billion in the first nine months.
EastWest Bank delivered a net income contribution of P5.8 billion in the first nine months, 32 percent higher than year-ago level, driven by better margins from its core lending and deposit-taking businesses and higher trading gains. —DORIS DUMLAO-ABADILLA
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