GT Capital core profit up 19%

MANILA, Philippines - GT Capital Holdings Inc. of tycoon George Ty reported a core net income of P7.4 billion in the first half of the year, up 19 percent year on year.

However, consolidated net income declined 21 percent to P9.11 billion because of non-recurring gains last year including proceeds from the sale of Global Business Power Corp. to the MVP Group.

GT Capital’s businesses are banking, property, automotive, insurance and infrastructure through a stake in Metro Pacific Investments Corp.

In a briefing yesterday, GT Capital officials said consolidated revenues rose 18 percent to P108.2 billion, buoyed by robust sales of vehicles from Toyota Motor Philippines (TMP), real estate sales from Federal Land Inc. and Property Company of Friends Inc. (Pro-Friends) as well as higher equity in net income of associates.

GT Capital president Carmelo Maria Luza Bautista said the first half results were in line with its expectations.

“The sustained strength of the domestic economy for the first six months of 2017 reinforced our company’s solid performance. We look forward to the rest of the year with optimism as our component companies continue to be on track with their growth and expansion objectives,” he said.

Toyota Motors Philippines posted a consolidated net income of P6.4 billion.  Sales reached 85,728 vehicles from January to June , representing an increase of 18 percent year on year.

TMP remains the leader in overall market share with 39 percent of the Philippine auto sector. Strong sales came from the Vios, Fortuner, Innova, and Avanza models, Bautista said.

The banking business under Metropolitan Bank & Trust Co. continued to make strides in its core business, reporting a five percent hike in net earnings to P9.5 billion.

Federal Land and Pro-Friends reported a combined P8.9 billion in consolidated revenues, up 14 percent year on year on the back of a 16 percent growth in real estate sales.                               

Bautista said demand for housing in the southern part of Luzon including Cavite, remains very strong, benefitting the company’s property companies.

AXA Philippines, the insurance business, meanwhile, achieved a significant 61 percent growth in consolidated net income to P1 billion.