GT Capital Q1 net jumps 61% on brisk car sales


GT Capital Holdings Inc., the listed holding company of tycoon George Ty, said its consolidated net income in the first quarter surged 61 percent year-on-year on the back of strong car sales and other contributions from its associate firms.

In a statement, the company said consolidated net income for the first quarter jumped to P2.8 billion from P1.7 billion a year earlier, while consolidated revenues climbed 15 percent to P35.8 billion from P31.1 billion previously.

The company said the first-quarter growth was attributable to the strong performances of its real estate, power, automotive and automotive financing, as well as life and non-life insurance business segments.

“For the remaining months of 2015, we believe that key sector developments such as higher per capita income and the trickling down of growth resulting in the advent of progressive next wave cities, as well as the multiplier effects of next year’s national elections, will benefit GT Capital’s lines of business,” GT Capital chairman Francisco C. Sebastian said.

Banking unit Metropolitan Bank and Trust Company (Metrobank) reported a 50 percent increase in core net income in the quarter. However, its consolidated net income in the period fell 10.3 percent to P5.1 billion from P5.68 billion a year ago.

Despite the lower profit, Metrobank officials previously said they plan to grow the bank and add 32 branches yearly over the next three years.

Automotive arm Toyota Motor Philippines (TMP) saw its first quarter consolidated net income soar 73 percent to P2.4 billion from P1.4 billion a year ago, thanks to a 22 percent year-on-year increase in car sales to 27,816 units during the quarter.

With a 39.2 percent market share to date, TMP plans to further expand its auto business, targeting a total of 52 and 60 dealerships by end-2015 and end-2016, respectively, from 42 dealerships in 2014.

GT Capital’s power business also performed strongly in the first quarter. Global Business Power Corp’s (GBPC) net income jumped 21 percent to P272.3 million from P224.9 million a year ago.

GBPC is set to expand further into renewable power generation with its venture into biomass energy production, GT Capital president Carmelo Maria Luza Bautista said after the company’s annual stockholders meeting recently.

Property unit Federal Land Inc. reported net income of P323.2 million in the first quarter, down sharply from P429.2 million a year earlier, as revenues dipped to P2.1 billion from P2.3 billion previously.

“Federal Land’s efforts exerted in master planning our Veritown Fort and Metropolitan Park-Bay Area projects are starting to take shape and will soon come into fruition. The Grand Hyatt complex, together with the Park West residential towers, are simultaneously moving at the Bonifacio Global City, while the Bluebay Walk retail arcade, as well as BPO and residential buildings, are on full blast over at the Pasay City complex,” Federal Land president Alfred V. Ty said.

This year, Bautista said Federal Land is looking at “launching seven new projects,” mostly vertical towers, two of which will be launched soon—Paseo de Roxas Salcedo Tower in Makati City and Six Senses Resort Tower 5 in Pasay City.

This will be side by side with its recent joint venture deal with Ayala Land Inc’s (ALI) upscale developer Alveo Land Corp. to build a 45-hectare horizontal township project along Laguna Boulevard in Biñan, Laguna.

Meanwhile, life insurance arm AXA Philippines posted net income of P366 million in the first quarter, up 52 percent from a year ago, on strong demand for investment-linked insurance products.

However, non-life insurance unit Charter Ping-An Insurance Corp. reported a 19-percent drop in net income to P44.3 million from P55 million previously as it took a hit from several medium-sized losses in the property segment.

Financial leasing subsidiary Toyota Financial Services Philippines Corp. (TFS), on the other hand, increased its net income in the period to P173 million from P102.7 million.

However, the combined net incomes of Toyota Manila Bay Corp. (TMBC) and Toyota Cubao Inc. (TCI) amounted to P25.1 million, down from P37.6 million in the first quarter of 2014.

For 2015, GT Capital is allotting some P50 billion for capital expenditure, which roughly the same amount it spent last year.

Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land), power (GBPC), automotive (TMP, TMBC and TCI), automotive leasing and financing (TFS), insurance (AXA Life Insurance), and non-life insurance businesses (Charter Ping An).


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