GT Capital Q1 core profit grows 12% to P3.2B

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CONGLOMERATE GT Capital Holdings, Inc. reported on Tuesday its core net income for the first quarter of the year rose 12 percent to P3.2 billion from P2.8 billion in the same period last year on the back of robust revenue and core earnings growth momentum of its component companies.

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In a disclosure to the Philippine Stock Exchange (PSE), GT Capital said strong auto sales from Toyota Motor Philippines (TMP) and higher equity in net income of associates Metropolitan Bank and Trust Company (Metrobank), AXA Philippines, and Metro Pacific Investments Corp. (MPIC) led to the company’s revenue growth.

“We started 2017 on solid footing. The robust revenue and core earnings growth momentum from our component companies resulted in GT Capital’s healthy performance. The sound fundamentals of the Philippine economy coupled with the dominant strengths of our subsidiaries provide us with a very positive outlook for the rest of the year,” GT Capital President Carmelo Maria Luza Bautista said.

Metrobank reported unaudited consolidated net income of P5.6 billion, up 6 percent compared with the same period last year.

Metrobank sustained the momentum in its core business with strong growth in loans and low-cost deposit generation, resulting in better margins. Fee income improved significantly, while operating expense growth was kept at a very manageable level.

The bank’s total revenues hit P1.99 billion while operating expenses grew 6 percent to reach P11.1 billion.
As of quarter-end, Metrobank’s total deposits grew 16 percent year-on-year to reach Php1.4 trillion. More importantly, CASA (current account, savings accounts) deposits expanded at a faster clip of 19 percent. The sustained build-up of low-cost deposits fueled the acceleration in the loan portfolio, which in turn climbed 26 percent to P1.1 trillion.

For its car business TMP, consolidated net income achieved was P2.5 billion, while consolidated revenues surged 32 percent to P37.1 billion, from P28.1 billion a year ago.

Toyota posted retail sales of 40,689 vehicles during the first quarter of 2017, achieving a 33 percent year-on-year improvement.

GT Cap said among the most sold cars are the Vios, Fortuner, Innova, Avanza and Hilux models.

MPIC achieved a 14 percent rise in its consolidated core net income to P3.1 billion from P2.7 billion in 2016 on the back of strong growth in operations.

“Core net income was lifted by robust traffic growth on each of the roads held by Metro Pacific Tollways Corporation, an expanded power portfolio through increased investment in Beacon Electric Asset Holdings, Inc. and Global Business Power Corp., as well as continuing growth in the Hospital Group,” the company said.

Meanwhile, AXA’s total sales in annualized premium equivalent from January to March this year grew 39 percent to P1.5 billion, from P1.1 billion in 2016.

Total premium revenues amounted to P5.7 billion. Regular premium income increased 27 percent year-on-year, while single premium income rose a significant 34 percent.

AXA Philippines’ net income, reflecting the correspondingly high growth in new business investment, was able to grow by 10 percent year-on-year to P427.7 million in the first quarter of 2017.

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