Filinvest Development Corp. (FDC) saw second-quarter attributable net income fall 9.7% to P3.42 billion from P3.78 billion a year earlier, as expenses grew faster than revenue, according to the company's quarterly financial disclosure filed with the Philippine Stock Exchange on Thursday. FDC is the listed holding company of the Gotianun family's Filinvest Group, a diversified Philippine conglomerate with businesses spanning banking, property, power, hospitality and sugar.

Gross revenue climbed 13.7% to P29.78 billion from P26.20 billion, but gross expenses rose even faster, increasing 21.5% to P26.10 billion from P21.48 billion.

Second-quarter segment performance

Banking and financial services remained the largest revenue contributor, generating P14.75 billion, up 21% from P12.19 billion.

Power operations produced P5.44 billion in revenue, a 20.5% increase from P4.52 billion, while revenue from the sale of lots, condominium units and residential units grew 16.9% to P4.79 billion from P4.10 billion.

Mall and rental revenue rose 4.8% to P2.38 billion from P2.27 billion, and hospitality revenue edged up 1.5% to P942.2 million from P928.1 million. Sugar operations recorded P1.47 billion in revenue, down 32.8% from P2.20 billion a year earlier.

Income before tax slipped 4.1% to P5.52 billion from P5.75 billion, while consolidated net income after tax fell 10.2% to P4.23 billion from P4.71 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 Chief Executive Officer Rhoda A. Huang said in a statement.

"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," she added.

First-half results

For the first half of 2026, FDC's attributable net income edged down to P7.36 billion from P7.43 billion a year earlier. Consolidated net income reached P9 billion for the six-month period, with Banking, Real Estate and Power remaining the group's main contributors.

Total revenues and other income increased 10% to P64.3 billion. Banking revenue rose 18% to P33.5 billion and Real Estate revenue gained 13% to P15.5 billion, while Hospitality revenue grew 1.5% to P2.2 billion. Power revenue, however, declined 5% to P9.1 billion.

Real Estate and Hospitality posted net income growth of 53% and 35%, respectively. Those gains were offset by a 23% decline in Banking profit, mainly due to higher loan-loss provisions compared with a year earlier.

East West Banking Corp., FDC's banking arm, which is itself listed on the Philippine Stock Exchange, reported standalone net income of P3.4 billion in the first half, as higher provisions for probable losses tempered revenue growth. Net interest income rose 21% to P23.1 billion, with consumer lending accounting for 85% of the bank's total loan portfolio, a concentration that makes provisioning levels a key swing factor in the bank's reported earnings.

The real estate segment, led by subsidiaries Filinvest Land, Inc., Filinvest Alabang, Inc. and Filinvest REIT Corp., recorded a 16% increase in revenue to P14.7 billion, driven by commercial lot and residential sales. Filinvest Land ranks among the country's largest residential developers, while Filinvest REIT listed in 2021 amid a wave of Philippine REIT offerings. Residential sales climbed 23%, supported by sales of ready-for-occupancy units and higher project completion, while mall and rental revenue was broadly steady with slight increases in occupancy and foot traffic.

The power business, led by FDC Utilities, Inc., posted P9.1 billion in revenue and other income. Its performance was affected by the expiration of bilateral contracts and lower contracted demand, partly offset by favorable prices in the Wholesale Electricity Spot Market, the country's trading platform for electricity.

Hotel operations under Filinvest Hospitality Corp. held at about the previous year's level, supported by higher average room rates and increased contributions from food and beverage.

Business mix

Banking accounted for 52% of FDC's total revenues and other income in the first half, followed by Real Estate at 24%, Power at 14% and Hospitality at 3%, with the balance coming from other business units.

By net income contribution, the Property group, comprising Real Estate and Hospitality, delivered P2.9 billion, or 33% of FDC's net income. Power contributed P2.6 billion, or 30%; Banking P2.5 billion, or 29%; and Sugar P682 million, or 8%.

As of end-June, FDC had total assets of P938 billion and a debt-to-equity ratio of 0.66:1.

The first-half pattern — property and hospitality profit growth set against higher banking provisions and a power unit absorbing the expiration of bilateral contracts — frames the main variables for the group's second-half results.

FDC shares fell 2.78% to P3.50 apiece on Thursday. — Alexandria Grace C. Magno