LISTED GT Capital Holdings Inc. reported that its consolidated net income for the first nine months of the year jumped 46 percent mainly due to strong vehicle sales in the period.
In a financial report to the Philippine Stock Exchange on Tuesday, GT Cap said its consolidated net income in the nine-month period soared to P12.3 billion from P8.4 billion a year ago.
Excluding extraordinary gains, core net income was up 23 percent at P9.3 billion from P7.6 billion last year.
Consolidated revenues increased 38 percent to P157.1 billion from P113.5 billion in the same period in 2015.
“The growth was primarily driven by sustained strong vehicle sales from Toyota Motor Philippines Corporation (TMP) and Toyota Manila Bay Corporation (TMBC), as well as higher contributions from net income of associates, particularly Metro Pacific Investments Corporation (MPIC),” the company said.
“The strong performance also reflects the positive impact of the various strategic initiatives we implemented during the first half of the year,” GT Capital president Carmelo Maria Luza Bautista said.
“We remain confident that this favorable momentum in our core business is sustainable for the last quarter and into the coming year,” he said.
Auto unit TMP reported a 40 percent rise in revenues in the nine-month period to P115 billion from P81.9 billion a year ago. It achieved 28 percent growth in retail sales in the first three quarters with 114 ,419 vehicles sold compared to 89,107 units sold in the previous year.
“Robust sales from the Vios, Wigo, Hiace, Fortuner, Innova, Avanza, and Hilux models contributed to TMP’s noteworthy results,” GT Capital said.
Meanwhile, MPIC posted a 23 percent increase in consolidated revenues to P33.1 billion and a 13 percent rise in its core net income to P9.3 billion in the nine-month period.
“Core net income was lifted by strong traffic growth on all its roads, an expanded power portfolio through increased economic interest in Meralco by acquiring additional Beacon Electric Asset Holdings Inc. shares from PLDT and in Global Business Power Corporation, and continuing growth in its Hospital Group,” GT Cap said.
In contrast, banking arm Metrobank posted a drop in its net income in the first nine months of the year to P12.6 billion from P13.3 billion in the previous year.
“This is primarily due to a 14.6 percent increase in the operating expenses from P29.0 billion to P33.3 billion and a 137.9 percent increase in provision for credit and impairment losses from P2.0 billion to P4.7 billion,” GT Cap said.
Property development units Federal Land Inc. and Property Company of Friends, Inc. (Pro-Friends) posted revenues of P7.5 billion and P3.9 billion, respectively.
For its insurance arm AXA Philippines, GT Capital said total life insurance sales in annualized premium equivalent increased 4 percent to P3.7 billion in the first nine months from P3.6 billion a year ago.
“Total premium revenues, inclusive of Charter Ping An Insurance Corporation from April2016 onwards, grew 5% from Php17.2 billion in the first nine months of 2015 to Php18.1 billion this year,” GT Capital said.