GT Capital H1 profit soars 62% to P9.1B

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GT Capital Holdings Inc. reported a 62-percent increase in consolidated net income from January to June mainly on strong sales of its automotive and real estate business segments.

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It said net income in the first half reached P9.1 billion, up 62 percent from P5.6 billion a year ago, while consolidated revenues rose 40 percent to P102.4 billion.

GT Capital said robust vehicle sales from its automotive arm Toyota Motor Philippines Corp. (TMP), sustained real estate sales, and higher contributions from the net income of associates drove revenue growth.

“We had a busy first half in 2016; consolidating our life and non-life insurance businesses, merging two key Toyota dealerships, diversifying our power generation assets into a strategic investment into MPIC, which is one of the largest utilities and infrastructure conglomerates, and more recently, increasing to a majority stake our investment in the affordable housing sector,” said Carmelo Maria Luza Bautista, GT Capital president.

“All these planned initiatives further strengthen GT Capital’s strategic position moving forward,” he added.

Last May, GT Capital sold a 56 percent stake in its power unit Global Business Power Corp. to Metro Pacific Investment Corp.’s (MPIC) affiliate Beacon Powergen Holdings Inc., resulting in a P2.9 billion net gain for GT Capital. In turn, GT Capital acquired a 15.55 percent direct ownership in MPIC.

Excluding the one-time transaction with MPIC, GT Capital’s core net income increased by 16 percent to P6.2 billion.

GT Capital’s banking arm Metropolitan Bank & Trust Company (Metrobank) reported a slightly lower net income in the first half of the year to P9.1 billion from P9.3 billion a year ago due to global financial uncertainties.

Metrobank’s net loans and receivables increased by 24 percent to P920.5 billion while its low cost deposits rose 21 percent.

GT Capital also received a P389-million equity net income from its 15 percent stake in MPIC as the Pangilinan-led firm saw a 13 percent rise in its consolidated core net income to P6.6 billion.

Its automotive arm TMP saw net income jump 33 percent from a year ago to P6.9 billion while its revenues also rose 33 percent to P71.3 billion. TMP sold 72,642 units in the first half, 26 percent higher than 57,717 units it sold in the same period last year. TMP remains the top selling car manufacturer in the country with an overall market share of 38.5 percent.

Both of GT Capital’s real estate units—high-end housing developer Federal Land Inc. and low-cost and affordable property developer Property Company of Friends Inc. (Pro-Friends)—also performed well.

Federal Land’s net income grew 4 percent year-on-year to P705 million on improved rental and real estate sales, while Pro-Friends’ net income surged 82 percent to P750.1 million.

Just last month, GT Capital increased its stake in Pro-Friends to 51 percent from 22.7 percent previously for P8.76 billion.

Life insurance arm AXA Philippines earned P3.2 billion in annualized premium equivalent from January to June, while total premium revenues reached P9.6 billion. For the first six months, the insurance firm’s net income increased 20 percent to P853.6 million.

Last year, GT Capital said it was allocating P60 billion budget for its capital expenditure (capex) program this year but in April this year, reports surfaced that the Ty holding firm had reduced its war chest to P44.7 billion.

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