Filinvest earns more; JG Summit, Alliance Global post lower net profits
Conglomerates Filinvest Development Corp., JG Summit Holdings Inc. and Alliance Global Group Inc. reported mixed earnings in the first nine-months, as their respective units faced challenges this year.
FDC, the holding company of the Gotianun family, reported a robust 19-percent increase in nine-month net income to P7.3 billion, led by strong performance of its banking and property businesses.
FDC, which owns East West Banking Corp. and Filinvest Land Inc., booked a 15-percent growth in consolidated revenues to P48.2 billion in January to September from P42 billion a year ago.
East West reported a net income of P3.7 billion in the first three quarters, up 60 percent over the same period last year on higher net interest income and fee-based income.
“EastWest’s higher income is mainly due to improving productivity and lower loan provisions despite higher coverage due to improved quality of its loan portfolio. These more than offset the lower trading revenues and substantial increase in taxes,” FDC chairman Jonathan Gotianun said.
Filinvest Land also posted a net income of P3.7 billion in the first nine months, an increase of 7 percent from last year, on higher residential and rental revenues.
Meanwhile, Alliance Global of billionaire Andrew Tan declared a net profit of P10.2 billion in the first nine months, down 8 percent from the same period last year, on revenues of P100.3 billion.
AGI said core businesses posted a mixed outcome in the nine-month period, with real estate operations and quick service restaurants recording very strong earnings, which tempered the weak performance of liquor and integrated resorts operations.
“The challenges we faced earlier this year required us to remain strong and persevering, never losing our sights on the future,” said AGI president Kingson Sian.
“The various initiatives we have undertaken and continue to pursue across all business segments are already poised for takeoff. We are therefore excited about the coming year which is even now presenting outstanding opportunities,” Sian said.
JG Summit of the Gokongwei family, also reported an 8-percent decline in consolidated net income in the first three quarters to P21.24 billion from P23.07 billion a year earlier.
JG Summit attributed the decline to lower profit of the airline business, which was affected by the rise in fuel prices. It was also linked to a lower income from food manufacturing business and losses from mark-to-market hedging.
Consolidated revenues grew 14 percent to P202.64 billion, on higher sales from airline, petrochemical and food manufacturing businesses.