GT Capital surpasses 2014 profit target

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GT Capital Holdings Inc has surpassed its profit growth target for 2014 with a P9.1 billion net income, a 38 percent increase from the preceding year, based on the strong performance of its automotive, power and real estate component companies.

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The 38-percent increase in core net income also exceeded the company’s target core net income growth of 13 percent to 15 percent for 2014, the company said in a statement.

“The increase in revenues resulted mainly from the solid performance of GT Capital’s component companies, notably the record-setting vehicle sales of Toyota Motor Philippines Corporation (TMP), improved net fees of Global Business Power Corp. (GBPC), and the strong real estate sales of Federal Land Inc. (Federal Land),” GT Capital said.

The consolidated net income from the firm and its subsidiaries rose only 6 percent to P9.2 billion from 2013’s P8.6 billion in the absence of the P2 billion non-recurring income that was present in 2013.

But the company’s revenues—that boosted both core net income and consolidated net income —surged by 35 percent to P143.1 billion from P105.7 billion.

For the fourth quarter of 2014, consolidated net income climbed 214 percent to P2.8 billion from P900 million on its life insurance, real estate, auto and banking units.

“GT Capital concluded 2014 with its component companies largely meeting high expectations. This was achieved by leveraging on our core strengths and the strategic partnerships formed with global brands that provide technical expertise. This unique business model allows the group to deliver sustainable healthy results,” GT Capital Chairman Francisco C. Sebastian said.

“As initially planned, GT Capital has now attained a more evenly distributed income contribution profile from its subsidiaries and affiliates,” Sebastian said.

“We face 2015 and beyond with renewed confidence in the group’s inherent capabilities, as we continue to bolster organic growth while looking out for new diversification opportunities for our portfolio,” he said.

Its banking arm Metropolitan Bank and Trust Company (Metrobank) posted a decline in consolidated net income to P20.1 billion from the P22.5 billion it earned in 2013.

Metrobank opened 64 branches last year, expanding its bank network to 920 branches, with a total of 2,100 automated teller machines nationwide.

Auto subsidiary TMP registered a P7.3 billion profit last year, which is a 71-percent push from P4.3 billion the previous year as its revenues rose 30 percent to P104.9 billion from P80.7 billion.

For power generation, GBPC’s net income grew 18 percent to P2.3 billion from P1.9 billion a year ago as its total sales increased by 12 percent to P19.2 billion from P17.2 billion in 2013.

Federal Land raised its net income by 48 percent to P1.5 billion from P1 billion, while total revenues climbed 19 percent to P9.4 billion from P7.9 billion.

“Federal Land ended the year positively on all fronts, realizing 28 percent and 22 percent growth in real estate sales and rental income, respectively. This further encourages us to continue building communities and launching new projects that provide high-quality residential, office, and retail-commercial spaces,” Federal Land President Alfred V. Ty said.

For GT Capital’s life insurance segment, Philippine AXA Life Insurance Corp. boosted its net income slightly to P1.22 billion from P1.18 billion in 2013 due to a 45-percent increase in its operational earnings during the period.

But non-life insurance arm Charter Ping An Insurance Corp. posted losses last year with decreased net income of P105.1 million from P190 million on significantly higher reinsurance costs booked on losses from Super Typhoon Yolanda (Haiyan) and other natural disasters in the previous year.

Automotive leasing and financing unit Toyota Financial Services Philippines Corp. (TFS) recorded lower profits to P400 million from P440 million last year.

GT Capital acquired 40 percent of TFS in August 2014 to provide leasing and financing services for its auto business.

Combined net incomes of Toyota Manila Bay Corp. (TMBC) and Toyota Cubao Inc. (TCI) reached P16.6 billion, which is a 21-percent increase from P13.7 billion in 2013.

For this year, GT Capital is allotting more or less P50 billion for its capital expenditures (capex), which is around the same amount of actual capital spending last year. The 2015 capex is expected to provide a bulk on the firm’s automotive business.

Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land), power (Global Business Power Corp.), 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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