MANILA, Philippines - Upbeat on its prospects amid an expanding local economy, GT Capital Holdings Inc., the investment firm of banking tycoon George S.K. Ty, said it expects earnings to hit around P5.5 billion in earnings this year.
“We’re not losing steam yet. The economy remains growing. We’re engaged in sectors that are consumer driven so expect us to continue growing,” said GT Capital president Carmelo Bautista.
Bautista said the company may likely match, if not exceed, its income target of P5.5 billion given a buoyant economy and increased consumer spending.
In the first half of the year, GT Capital posted a net income of P4.02 billion or more than twice what it reported in the same period in 2011 due to one-time gains and the robust growth of its real estate, power and automotive businesses.
Core net earnings amounted to P2.6 billion, 51 percent more than the previous period’s level. Total revenues also more than doubled to P10 billion from P3.5 billion, mainly due to the consolidation of Global Business Power Corp. (GBPC), higher equity in earnings of associates, and the P1.4-billion non-recurring income realized from property unit Federal Land.
FedLand showed solid performance, posting net earnings of P1.7 billion, more than eight times the P201 million recorded a year ago, on brisk sales.
GBPC likewise more than doubled its first semester profit to P1.3 billion, largely due to the full year operations of its coal-fired power plants in Cebu and Panay, complemented by the company’s participation in the Wholesale Electricity Spot Market.
Toyota Motor Philippines reported a 35 percent jump in net income to P1.5 billion, driven by an increase in volume, sales and marketing initiatives and warm market acceptance of its new vehicle models. Volume sales increased 17 percent, outpacing the industry growth of seven percent.
Metropolitan Bank & Trust Co. posted net earnings of P7.4 billion, up 21 percent on healthy growth in core revenues and the rationalization of operating expenses. Its non-performing loans ratio improved 2.2 percent with total capital adequacy ratio likewise strengthening to 18.5 percent.