GT Capital Holdings Inc., the listed conglomerate of businessman George Ty, is increasing its capital expenditure (capex) budget by 20 percent next year to P60 billion to fund its core business, power and property segments.
Carmelo Maria Luza Bautista, GT Capital president, told reporters on Monday that the company will be spending P60 billion next year from P50 billion this year to fund potential acquisitions.
“[We are allotting] P10 billion for the parent GT Capital, around P15 billion for Global Power [Global Business Power Corp.], P15 billion for Federal Land [Inc.], and P9 billion for ProFriends [Property Company of Friends Inc.],” Bautista said.
He said about P2.3 billion will go to Philippine AXA Life Insurance Corp.’s full acquisition of non-life insurance unit Charter Ping An Insurance Corp, signed last November 5. Through the buyout, GT Capital will merge its life and non-life insurance businesses through AXA Philippines-Charter Ping An consolidation.
“The balance was actually earmarked in some sort of working capital for future investments, acquisitions. So it’s just some sort of a war chest,” Bautista said.
Bautista said the group was on track with its spending program this year. “We’ve spent already P39 billion in first nine months. It’s still doable to make P50 billion. Maybe a little less, but now we’re on track to make do,” he said.
GT Capital also announced that its January to September net income surged by 34
percent to P14.1 billion from P10.5 billion a year ago on its robust automotive business, sustained real estate sales and higher contributions from associates.
Net income attributable to equity holders jumped 33 percent to P8.4 billion from P6.3 billion last year. Consolidated revenues rose 10 percent to P115.1 billion from P104.9
billion in 2014.
“GT Capital’s performance for the period validates our distinct business model of strong partnerships and synergies. We further enhanced this strategy through the recently disclosed acquisition by AXA Philippines of Charter Ping An Insurance Corporation.
Through such initiatives, we remain confident in GT Capital’s continued growth momentum,” GT Capital chairman Francisco C. Sebastian said in a statement.
GT Capital’s banking arm Metropolitan Bank and Trust Company (Metrobank) remained the largest contributor to earnings as its net income surged 25 percent in the nine months to P13.3 billion, jacked up by strong contributions from loans and deposits.
Metrobank was also hailed as the “Strongest Bank in the Philippines” in The Asian Banker 500 (AB 500) Strongest Bank by Balance Sheet Ranking for 2015, taking the 9th spot among Asian banks.
Automotive subsidiary Toyota Motor Philippines (TMP) posted a 56-percent rise in nine-month net income to P7.7 billion from P4.9 billion a year ago. TMP’s revenues reached P81.9 billion from P77.2 billion last year on higher auto sales, which grew 16 percent year-on-year to 89,107 units as of end-September, cornering 38.5 percent share of the market.
Power unit Global Business Power Corp. (GBPC) recorded net income of P1.9 billion, up 15 percent from a year ago, as its net fees improved to P13.7 billion during the nine-month period.
Property arm Federal Land Inc. posted net income of P1.1 billion as revenues increased by 15 percent to P8 billion, driven by a 33 percent rise in rental incomes and 12 percent improvement in housing sales.
Life insurance business AXA Philippines reported a 31 percent increase in net income to P1.1 billion on higher gross premiums and gains realized from securities. It earned P3.6 billion in total annualized premium in the period, while gross premiums rose by 36 percent to P17.2 billion.
Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land Inc.), power (Global Business Power Corp.), automotive (TMP, Toyota Manila Bay Corp. and Toyota Cubao Inc.), automotive leasing and financing (Toyota Financial Services Philippines Corp.), life and non-life insurance (AXA Philippines and Charter Ping An).