Ty-led GT Capital’s earnings slump 26% on COVID-19 impact

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GT Capital

GT Capital Holdings, Inc. (GT Capital) booked a 26% drop in net income for the first quarter as the coronavirus disease 2019 (COVID-19) pandemic took a heavy toll on the profits of nearly all its business units.

The Ty-led holding firm reported earnings of P2.5 billion in the January-to-March period, down from the P3.4 billion it recorded the same period last year. Core net income declined 16% to 2.8 billion as consolidated revenues fell 13% to P39 billion.

By business segment, banking arm Metropolitan Bank & Trust Co. (Metrobank) contributed a net income of P6.1 billion, lower by 9% year-on-year and making up 59.3% of the pie. This decline is due to Metrobank’s reaction to the COVID-19 pandemic, doubling provisions to P5 billion which weighed on its bottomline.

Automotive arm Toyota Motor Philippines (TMP) added P1.5 billion in net income, down 20% from last year and comprising 19.2% of the group’s total. Retail vehicle sales dropped 23% to 25,686 units, as most of TMP’s dealers were closed in end-March due to the quarantine.

Real estate unit Federal Land, Inc. was the only business segment that posted an income growth during the first quarter, surging 98% to P375 million. This was due to the 86% jump in reservation sales and 40% increase in lease revenues, resulting in a 33% growth in consolidated revenues to P3.3 billion.


GT Capital’s stake in Metro Pacific Investments Corp. (MPIC) resulted in a net income of P300 million, declining 47% from a year ago due to the slowdown in MPIC’s toll roads, water and rail segments.

Insurance unit Philippine AXA Life Insurance Corp. added a P367 million to the net income, slumping 55% from last year due to the 30% market value decline in its equities portfolio as a result of the quarantine.

Despite this, GT Capital President Carmelo Maria Luza Bautista said he is confident the company will recover as it adapts to the changing environment triggered by the COVID-19 pandemic.

“We are confident that we can bounce back from the current worldwide disruptions and adapt our strategies to the ‘new normal’ conditions of the marketplace,” he was quoted as saying in a statement.

“Given the diversity of our investment portfolio, the strong position we hold in the sectors we are in, our solid financial position, and our strategic partnerships, we believe that our group will be more resilient in coping with today’s difficult environment,” Mr. Bautista added.

Shares in GT Capital at the stock exchange lost P12 or 3% to close at P388.40 apiece on Monday. — Denise A. Valdez