GT Capital sees ‘very positive’ earnings

Ty-led GT Capital Holdings, Inc. expects to maintain its earnings growth momentum for the rest of the year driven mainly by its various business units, its top official said.

GT Capital President Carmelo Maria Luza Bautista told BusinessWorld last Thursday that the company is expecting “very positive” earnings for the year coming off the momentum seen during the first quarter.

“It will be very good… a significant improvement versus last year,” he said.

During the January-to-March period, GT Capital booked a consolidated net income of PHP 6.64 billion, up 52% from PHP 4.4 billion a year ago, driven by contributions from its business units.

Mr. Bautista said the company’s units Metropolitan Bank & Trust Co. (Metrobank) and Toyota Motor Philippines Corp. posted record numbers during the first quarter, which significantly lifted the group’s numbers.

Metrobank saw its net income jump by 31.3% to PHP 10.5 billion, translating to a 13.1% return on equity.

Toyota 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.

“We’re doing launches [through Federal Land, Inc.], so property would be the third engine,” Mr. Bautista said.

Federal Land announced earlier its intention of going into estate development, which will begin with a collection of 10 master-planned, multi-use properties under its Federal Land Communities product line.

It also recently launched a 600-hectare mixed-use development, Riverpark, in General Trias, Cavite.

“This is a major move away from single tower developments into an actual estate because we do have the advantage of a significant land bank,” Mr. Bautista said.

He said the company is focusing on its value chains and looking at businesses that are associated with its core units.

“So, it’s more on alliances and synergies of the value chain rather than a new sector altogether, mahirap ‘yan (that is difficult), unless we find a strategic partner,” he said.

The company has several strategic global partnerships in its portfolio, including Toyota Motor Corp., Axa S.A., Mitsui & Co. Ltd., and Sumitomo Corp.

“We seem to be the partner of choice with foreign investors, and the Philippines is actually [an] attractive investment destination although it would still need a push in terms of foreign direct investments,” he added.

On Friday, GT Capital shares closed unchanged at PHP 520 apiece. — Adrian H. Halili