GT Capital core net income rises 12% in 1st quarter
GT CAPITAL Holdings, Inc. said its core net income grew 12% in the first quarter of 2017, riding on the back of robust sales from its automotive business, as well as higher share in the income of associates.
The holding firm of tycoon George T.K. Sy on Monday said it recorded a core net income of P3.2 billion in the January to March period, from P2.8 billion posted in same period last year. Consolidated net income, on the other hand, went up 5% to P3.1 billion from P2.9 billion a year ago.
Consolidated revenues surged 32% to P48.8 billion from P36.8 billion a year ago, driven by strong auto sales from Toyota Motor Philippines (TMP), and increased equity in net income of associates Metropolitan Bank and Trust Co. (Metrobank), AXA Philippines and Metro Pacific Investments Corp. (MPIC).
“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 Carmel Maria Luza Bautista was quoted as saying in a statement.
GT Capital’s auto business through TMP generated 32% higher revenues to P37.1 billion in the first quarter, resulting in a consolidated net income of P2.5 billion. TMP sold 40,689 vehicles during the January to March period, up 33% year on year, driven by sales of Vios, Fortuner, Avanza, and Hilux.
Metrobank posted a 6% rise in consolidated net income to P5.6 billion for the period, as total revenues hit P19.9 billion. The bank saw strong growth in loans and low-cost deposit generation, which resulted in better margins.
Metrobank ended the quarter with total deposits of P1.4 trillion, up by 16% year on year, with current account-savings account deposits growing at a rate of 19%. This fueled the bank’s acceleration in loan portfolio, which rose 26% to P1.1 trillion in the quarter.
MPIC reported a 14% increase in consolidated core net income to P3.1 billion for the quarter, boosted by robust traffic growth in its tollway arm Metro Pacific Tollways Corp., an expansion in its power portfolio through investments in Beacon Electric Asset Holdings, Inc., and Global Business Power Corp., and growth in its hospital business.
GT Capital’s property investments, Federal Land, Inc. and Property Company of Friends, Inc., reported a combined P3.5 billion in consolidated revenues in the first quarter. The two property developers’ bet income stood at P590.5 million as of end March.
Earnings of AXA Life Insurance Corp., meanwhile, gained 10% year on year to P427.7 million for the first quarter, as total sales in annualized premium equivalent climbed 39% to P1.5 billion.
Shares in GT Capital were up by P19 or 1.54% to close at P1254 at the Philippine Stock Exchange on Tuesday.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. -- a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. -- maintains interest in BusinessWorld through the Philippine Star Group, which it controls. -- Arra B. Francia