GT Capital reports 69% drop in net income in 9 months

MANILA, Philippines — GT Capital Holdings Inc. saw earnings decline in the nine months ending September despite posting stronger third quarter results.

The listed conglomerate of the late George Ty said its core net income fell 69 percent to P3.7 billion during the nine-month period from P12 billion in the same period last year.

Consolidated net income also plunged 79 percent to P3.2 billion from P15.1 billion last year.

In the third quarter, however, GT Capital was able to record P574 million in core net income, a 71 percent increase from P335 million in the previous quarter.

GT Capital’s consolidated net income in the third quarter also grew to P489 million from P198 million in the previous quarter.

Consolidated revenues during the nine months ending September dropped to P85.6 billion from P159.3 billion the previous year.

“While the July results showed early signs of recovery, the return to modified enhanced community quarantine in August abruptly reversed the growth momentum. Nevertheless, we continue to push our way back to pre-Covid-19 performance levels, while astutely managing our operating costs across all lines of business,” GT Capital president Carmelo Maria Luza Bautista said.

GT Capital has interests in businesses across banking, automotive assembly, importation, dealership, and financing, property development, life and general insurance, and infrastructure.

GT Capital said Metrobank contributed a net income of P11 billion during the nine-month period, while Toyota Motor Philippines realized a net income of P2.2 billion.

AXA Philippines’ consolidated net income rose 21 percent year-on-year to P2.3 billion driven by higher single premium sales.

Wholly-owned property subsidiary Federal Land Inc., however, saw consolidated net income fall to P172 million from the P769 million last year due to the stoppage and slowdown of construction activities during the quarantine periods.

Metro Pacific Investments Corp. also reported a 38 percent drop in consolidated core net income to P7.7 billion attributed to the economic contraction of the country.

“We are confident that with the flattening of the curve in new Covid-19 cases, and the reopening of more sectors under the existing general community quarantine environment, the last quarter of 2020 will result in a strong finish for our group, paving the way for an even stronger recovery in 2021,” Bautista said.