LT Group Inc. announced on Tuesday a capital expenditure (capex) program of P10 billion for 2017, bulk of which will be earmarked for the construction projects of its real estate arm Eton Properties Inc. and technology upgrades of banking unit Philippine National Bank (PNB).
“Four to five billion [pesos]for Eton and two to three billion [pesos]for PNB,” LT Group Inc. President and Chief Executive Officer Michael Tan told members of the press.
The rest of the capex will be used for their other businesses, Tan said.
Earlier, Eton Properties said it plans to create more environment-friendly office spaces to optimize growth of the business process outsourcing (BPO) industry, particularly in Quezon City.
Eton currently has two BPO hubs, the Centris Cyberpod and the Corinthian Cyberpod.
“Eton will continue to enjoy high occupancy rates in the BPO office buildings, as well as the retail space that complement these and its residential development,” LTG said in a statement.
PNB, meanwhile, has to upgrade its information technology system to enable the bank to offer more products and services to customers.
“There’s a lot of things we can do internally for the business,” Tan said.
According to him, the company is exerting an effort to make the bank more secure and safe from cyber threats, and therefore it is a must to be “extra vigilant.”
Tan said LTG is also eyeing to put up more PNB Savings branches around the country.
Eton generated net income of P388 million last year, while PNB accounted for P3.42 billion of LTG’s total net income of P9.39 billion.