GT Capital profits shrink to P1.7B

MANILA, Philippines - Weaker earnings from its banking and power businesses dragged the performance of conglomerate GT Capital Holdings Inc. in the first quarter.

In a regulatory filing, the investment holding firm of tycoon George S.K. Ty said its net income was more than halved to P1.7 billion in January to March from P4 billion reported in the same period last year. Consolidated revenues, however, jumped 40 percent to P31.1 billion from P22.2 billion.

“The company’s revenue increase came mostly from higher vehicle and real estate sales of Toyota Motor Philippines Corp. (TMP) and Federal Land Inc., respectively,” the holding firm said.

However, Metropolitan Bank & Trust Co. reported a 50-percent decline in its earnings to P5.7 billion, tracking the banking industry’s drop sans large trading gains from last year. Total deposits surged 50 percent to P1 trillion, fuelling the 19-percent expansion in net loans and receivables to P623.5 billion.

Also, Global Business Power Corp.’s profits slipped 42 percent to P224.9 million in the first quarter from P390.7 million last year.

“The decline resulted mainly from a prolonged regulatory cap implemented on Wholesale Electricity Spot Market (prices, lower electricity demand and transmission constraints’ in the Visayas due to the effects of Super Typhoon Yolanda,” GT Capital said.

“Notwithstanding the anticipated softer growth during the first quarter of this year, GT Capital continued with its strategic consolidation initiatives,” said GT Capital chairman Arthur V. Ty.

The company acquired Toyota Cubao Inc. and increased its direct ownership in Charter Ping An Insurance Corp. and Toyota Manila Bay Corp., Ty said.

For its part, TMP’s consolidated net income rose by a quarter to P1.4 billion from P1.1 billion as total revenues amounted to P23.6 billion, up 28 percent from P18.5 billion.

Property firm Federal Land said its net income climbed 83 percent to P423.7 million from P231.6 million as total revenues hit P2.3 billion, growing 38 percent from P1.7 billion last year.

“Federal Land started the year with a continued improvement in its booked revenues and rental income. We remain confident that this positive trend will be sustained throughout 2014,” said Federal Land president Alfred V. Ty.