Business units drive GT Capital’s 52% profit rise

GT CAPITAL Holdings, Inc. booked a consolidated net income of PHP 6.64 billion in the first quarter, up 52% from PHP 4.4 billion a year ago, driven by contributions from its business units, it said on Tuesday.

“Our first-quarter financial results show all our operating companies sustaining the high growth momentum of the previous year,” GT Capital President Carmelo Maria Luza Bautista said in a statement.

“With expectations of a more stable macroeconomic environment, less value chain disruptions, and resurgent consumption, our outlook remains positive for the rest of the year,” he added.

The company’s banking unit Metropolitan Bank & Trust Co. (Metrobank) saw its net income jump by 31.3% to PHP 10.5 billion, translating to a 13.1% return on equity, higher than the 10.3% last year. Net interest income rose by 28.8% to PHP 24.9 billion on the back of a 12.5% increase in loans and a 54-basis-point hike in net interest margin to 3.9%.

“Metrobank’s solid performance in the first three months of the year reflects our continued efforts to capture opportunities of a growing economy while we strive to keep our balance sheet strong against risks of volatile market conditions,” Metrobank President Fabian S. Dee said.

Toyota Motor Philippines Corp. (TMP) more than doubled its consolidated net income for the quarter to PHP 4.5 billion from PHP 2.1 billion in the same period last year. Consolidated revenues jumped 28% to PHP 53.7 billion from PHP 42.1 billion previously.

In the first quarter, TMP’s retail vehicle sales increased by 21% to 45,205 units. Although lower than the market growth of 27% to 95,270 units, the company cornered an overall market share of 47.4%.

“TMP has clearly shown a strong performance for the first quarter. The continuing normalization of supply chains has seen the market and Toyota sales volumes expand,” GT Capital Auto and Mobility Holdings, Inc. Chairman, Vince S. Socco said. “Demand for motor vehicles remains robust in line with the sustained high levels of economic recovery. As well, the return of consumer loan financing is further spurring vehicle purchases.”

GT Capital’s property unit Federal Land, Inc. saw its first-quarter consolidated net income decline by 8% to PHP 286 million from PHP 311 million the prior year, while revenues fell by 7.1% to PHP 2.6 million from PHP 2.8 million in the same period last year.

Reservation sales rose by 71% to PHP 6.2 billion due to sales from The Seasons Residences and the Grand Hyatt Residences in Bonifacio Global City, Taguig.

The company’s associate Metro Pacific Investments Corp. (MPIC) booked a consolidated core net income of PHP 4.3 billion in the first quarter, up 38% from P3.1 billion a year ago, after its business holdings recorded better results.

Manila Electric Co. contributed PHP 4.2 billion or 75% of MPIC’s net operating income for the quarter, followed by Metro Pacific Tollways Corp. with a share of PHP 1.3 billion or 23%, and Maynilad Water Services, Inc. with PHP 1.1 billion or 19%.

GT Capital’s other businesses — light rail, healthcare, agribusiness, real estate, and fuel storage — incurred a total net loss of PHP 967 million.

A consortium of companies, which includes GT Capital, had recently submitted a tender offer to buy out the 36.6% minority shares in MPIC amounting to a tender offer price of PHP 4.63 per share.

The company would spend about USD 70 million for an additional 2.9% stake in MPIC. If realized, its stake in MPIC would increase to 20%.

Meanwhile, AXA Philippines recorded a consolidated net income of PHP 708 million, up 66% from PHP 426 million the prior year, driven by improved margins and net investment income.

Its consolidated life and general insurance gross premiums fell by 23.2% to PHP 6.3 billion from PHP 8.2 billion last year, as investors remain cautious due to market uncertainties.

On Tuesday, GT Capital shares surged 4.21% or PHP 20 to close at PHP 495 each. — By Adrian H. Halili