MANILA, Philippines - GT Capital Holdings Inc. more than tripled its profits in the first quarter due to higher income contributions from almost all its operating units, the company said in a report.
The investment holding firm of banking tycoon George S.K. Ty is depending on the healthy economy for further growth this year.
In a regulatory filing, GT Capital said its consolidated net earnings surged to P4 billion from P1.3 billion a year earlier.
Core net income, which excludes non-recurring factors like currency and derivatives-related items, jumped 112 percent to P2.7 billion from a year ago.
This was supported by robust revenues, which hit P22.3 billion, up 789 percent from P2.5 billion last year.
“The substantial upsurge in revenues is a result of the increase in GT Capital’s direct ownership of both Global Business Power Corp. (GBPC) and Toyota Motor Philippines,†GT Capital said.
The conglomerate said it also benefited from higher contributions from associates Metropolitan Bank & Trust Co. (Metrobank) and AXA Philippines, and a non-recurring gain from the consolidation of Toyota.
“The strong performance of GT Capital during the first three months of 2013 indicates that we are on track in achieving our overall objectives for the year,†said GT Capital chairman Arthur Ty.
“We are encouraged with the prospects for further growth, given the recent positive economic developments and continued healthy outlook for the Philippines,†he added.
GT Capital is into banking (Metrobank), property (Federal Land Inc.), automotive (Toyota), power production (GBPC) and insurance (Philippine AXA Life Insurance, a joint venture with global insurance giant AXA Group).
Nearly all operating units recorded stronger performance in the first three months of the year.
Metrobank’s consolidated net income picked up 163 percent to P11.4 billion from P4.3 billion as the bank sustained a loan growth of 15 percent to P523.3 billion given higher demand from the consumer and middle market segments.
For Toyota, the automotive dealer announced a 49-percent growth in its net income to P1.1 billion after it sold 17,061 vehicles in the first quarter, cornering a 35-percent market share.
Property firm Federal Land’s consolidated income more than doubled to P240 million from P110 million year-on-year, with revenues gaining 56 percent to P1.7 billion.
“Given the sustained resiliency of the property sector supported by low interest rates, Federal Land will continue to benefit from strong market demand for its master-planned residential and commercial communities,†said GT Capital vice-chairman and Federal Land president Alfred Ty.
Insurance firm AXA Philippines’ net income nearly doubled to P324 million from P164 million last year on the back of a 71-percent increase in total premium income to P4.7 billion.