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GT Capital books P13.4-billion profit

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GT Capital

GT CAPITAL Holdings, Inc.’s net income slipped by six percent in 2018, following a double-digit drop in its topline due to softer vehicle sales from its auto unit.

In a statement issued Wednesday, the listed conglomerate said consolidated net income reached P13.4 billion last year, lower than the P14.2 billion it posted in 2017. Consolidated revenues also fell 10% to P215.8 billion during the period.

“GT Capital weathered strong headwinds in 2018 as soft vehicle unit sales were cushioned by noteworthy results in our financial services, property, and insurance businesses,” GT Capital President Carmelo Maria Luza Bautista said in a statement.

Toyota Motor Philippines (TMP)’s consolidated net income slumped 39% to P8 billion, against the P13.2 billion it posted in 2017. The company attributed TMP’s slowdown to the implementation of the tax reform law in January last year, which increased the excise tax of automobiles.

The auto unit’s consolidated revenues stood at P159.2 billion, 14% lower year on year, after retail vehicle sales dipped 17% to 153,004 units. This is in line with the total industry’s decline in sales of 15% in 2018.

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To support its auto business, GT Capital said its unit GT Mobility Ventures, Inc. has partnered with auction house operator Japan Bike Auction Co., Ltd. for the formation of JBA Philippines.

The partnership will extend TMP’s value chain to used car auction house operations.

For the banking unit, Metropolitan Bank and Trust Company (Metrobank) expanded its net income by 21% to P22 billion last year, driven by a 10% growth in its loan portfolio, margin expansions, and higher service charges, among others.

Metrobank’s loan portfolio reached P1.4 trillion last year, while total deposits also gained two percent to P1.6 trillion. The company noted that its net interest margin was the highest among other banks at 3.82%.

Meanwhile, its property development firms Federal Land, Inc and Property Company of Friends, Inc. delivered a combined net income of P2.4 billion, 13% higher year on year, fueled by a 30% jump in consolidated revenues to P23.8 billion.

Combined real estate sales also grew by a third to P20.1 billion, following the launch of eight properties for the year.

GT Capital’s life insurance company, AXA Philippines, saw its net income climb by 25% to P3.1 billion, thanks to a 10% increase in consolidated life and nonlife gross premiums to P35.4 billion.

The conglomerate also benefited from the growth of its affiliate Metro Pacific Investments Corp., which grew its consolidated core profit by seven percent to P15.1 billion.

“Tapering inflation, declining interest rates, persistent growth in overseas Filipino remittances, and election-related spending should reboot consumer confidence. Thus, we are optimistic for the rest of 2019,” Mr. Bautista said.

Shares in GT Capital retreated 3.28% or P32.50 to close at P959.50 each at the stock exchange on Wednesday. — Arra B. Francia

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