Filinvest Development Corp.’s banking subsidiary East West Bank led the conglomerate last year, allowing it to post a net income of P8.5 billion in 2020.
This reflected a 29 percent drop compared to P12 billion a year ago.
FDC said 2020 was a particularly difficult year for many enterprises and the company not spared by the severe impact of the COVID-19 pandemic. Its portfolio mix, however, allowed the company to report healthy financial results despite the challenging environment.
“Amidst the difficult business environment in 2020, we are pleased that we were able to strike a balance in our overall performance. Some businesses took a harder hit but other businesses continued to deliver solid performances,” said FDC president and CEO Josephine Gotianun-Yap.
Among the different business segments, banking arm EastWest Bank led the 2020 numbers, with a net income contribution to the group of P6.4 billion, equivalent to 46 percent of FDC’s bottom line, latest results showed.
Real estate and hospitality segments delivered a combined P5.3 billion or 38 percent of total while the power subsidiary contributed P1.9 billion in net income or 14 percent of total.
The balance of two percent came from other businesses.
Gotianun-Yap said COVID-19 disrupted the company’s 2020 growth plan.
“Coming from a landmark year in 2019, the COVID-19 pandemic brought an unexpected pause to our 2020 plans,” she said.
In all, FDC shifted gears in our business operations and quickly adjusted and innovated to adapt to the circumstances.
“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,” added Gotianun-Yap.
Revenues and other income retreated by 15 percent as the growth posted by the banking business was offset by the contraction of the property business.
FDC’s business include banking, property, hospitality and power.
Among the different businesses, hotel operations under Filinvest Hospitality Corp. (FHC) was the most affected by the pandemic in the group.
Hotel operations posted a revenue decline of 63 percent to P1.2 billion in 2020 as occupancy rates dropped across the properties, leading to a net loss of P731 million.
FDC said five out of its six hotels and resorts remained in operation throughout 2020 but on a very limited basis due to the travel and mobility restrictions.
For instance, premier resort Crimson Boracay temporarily ceased operations while the entire island of Boracay was on lockdown.
“The easing of domestic tourism outside of Metro Manila has been helping lift turnover at Crimson Boracay and Crimson Mactan,” FDC said.