GT Capital registers P4-B net income in H1

MANILA, Philippines - GT Capital Holdings Inc. booked lower profits in the first semester, weighed down by the banking and power generation units.

The investment arm of banking tycoon George S.K. Ty posted a net income of P4 billion, down more than a third from P6.1 billion in the same period last year despite the 35-percent surge in consolidated revenues to P66.2 billion from P49.1 billion.

The revenue growth resulted mainly from higher vehicle sales of Toyota Motor Philippines Corp. (TMP) and the strong real estate sales of Federal Land Inc.

“GT Capital’s component companies performed within our expectations during the first half of this year. We thus remain confident that the company will operate equally well for the rest of the year, with our dominant auto business and resilient property development projects as key growth drivers,” said GT Capital chairman Francisco C. Sebastian.

In the first half, flagship bank Metropolitan Bank & Trust Co. said its net income was halved to P9.1 billion, tracking the banking industry’s drop sans large trading gains from last year.

However, it registered a double-digit growth in loans and deposits, steady margins and better cost management. Consolidated deposits increased 23 percent to P1.1 trillion while loan growth was sustained at 19 percent to P647.5 billion.

For TMP, total revenues jumped 29 percent to P48.9 billion from P37.8 billion while consolidated net income rose 30 percent to P2.98 billion from P2.3 billion year-on-year.

“From January to June this year, the Philippines’ most dominant auto company sold 48,512 vehicles, resulting in a year-on-year growth of 39 percent and a total market share of 38.4 percent,” GT Capital said.

Net income of Global Business Power Corp. (GBPC) eased 16 percent to P920 million from P1.1 billion while realized revenues rose 5.4 percent to P9.3 billion from P8.8 billion.

“Unscheduled downtime due to technical issues in GBPC’s Sangi power plant in Toledo, Cebu and the effects of the massive destruction brought about by Super Typhoon Yolanda in the Visayas largely contributed to the decline,” GT Capital said.

Property unit Federal Land booked a 58-percent surge in profits to P716.2 million from P453.3 million as total revenues improved 21 percent to P4.4 billion from P3.7 billion.

“Federal Land completed the first half of the year by delivering encouraging results. The company’s robust performance during the period was supported by the combined improvements in real estate sales, in the earnings of associates and joint ventures, as well as in rental income,” said Federal Land president Alfred V. Ty.

Philippine AXA Life Insurance Corp.’s total sales in annualized premium equivalent reached P1.8 billion in the first half, including regular premiums that grew 28 percent to P1.3 billion.

Net income hit P561 million from P851 million due to a rebalancing of capital gains on investments realized in 2013, GT Capital said.

Charter Ping An Insurance Corp. recorded a 13-percent increase in gross premium written from to P2 billion from P1.8 billion. The non-life insurance company’s net income amounted to P101.7 million from P112.2 million, still mostly due to higher than normal claims and losses from Typhoon Agaton in Mindanao early this year, GT Capital said.

Car dealers Toyota Manila Bay Corp. and Toyota Cubao Inc. reported combined consolidated revenues of P7.8 billion in the first half, up 17 percent from P6.7 billion a year ago. The firms’ combined income surged 37 percent to P81 million from P59 million last year.

GT Capital allotted P50 billion for its capital expenditures this year, mostly to fund property and power projects.