GT Capital posts P6.3-B net income in Jan-Sept

MANILA, Philippines - GT Capital Holdings Inc., the investment holding firm of tycoon George Ty, said its earnings slipped in the first nine months of the year despite posting higher revenues.

In a statement, GT Capital said its net income in January to September this year stood at P6.3 billion, 18 percent lower than P7.7 billion recorded in the same period last year.

The conglomerate’s revenues, however, firmed up in the first three quarters as it grew 37 percent to P104.9 billion from P76.8 billion in 2013.

GT Capital said the revenue growth came mostly from higher vehicle sales of Toyota Motor Philippines Corp. (TMPC), improved net fees of Global Business Power Corp. (GBPC), and the continued robust real estate sales of Federal Land Inc.

Earnings, however, were dragged by slower banking business due to the absence of trading gains last year.

“GT Capital’s performance for the first nine months of this year is on track due to the encouraging results delivered by our component companies. We therefore remain confident in achieving our full-year targets,” said GT Capital chairman Francisco C. Sebastian.

In the third quarter alone, the holding firm’s net income jumped 46 percent year-on-year to P2.4 billion from P1.6 billion last year while revenues remained robust for the period at P38.8 billion, up 40 percent from P27.7 billion a year ago.

“In addition, we expect positive developments in the last quarter of the year, such as favorable foreign exchange rates, higher remittances from overseas Filipinos, greater demand for power, and increased personal consumption expenditure during the holiday season, to further enhance the performance of our subsidiaries and affiliates,” Sebastian said.

GT Capital is a major Philippine conglomerate with interests in banking, automotive assembly, importation, dealership, and financing, power generation, property development, and life and non-life insurance.

Metropolitan Bank & Trust Co., GT Capital’s banking arm, posted 37 percent lower net income in the nine-month period to P13.1 billion from P20.7 billion last year.

Metrobank, however, managed to book P4 billion net income in the third quarter alone, 57 percent higher year-on-year.

Picking up the slack in its banking business’ earnings are majority of GT Capital business units which posted stronger year-on-year results in the first three quarters.

TMPC’s net income rose 53 percent to P4.9 billion from P3.2 billion, while revenues spiked 33 percent to P77.2 billion from P58.1 billion last year.

Power unit GBPC saw an eight percent improvement in its profits in the first nine months to P1.7 billion with revenues also increasing 14.5 percent to P14.3 billion.

Federal Land’s net income from January to September 2014, meanwhile, grew 26 percent to P1.1 billion from P900 million last year.

Total revenues of the property firm reached P7 billion, 16 percent more than the P6 billion made last year.

“Federal Land continues to be bullish with the opening of its first commercial mall this year, the Blue Bay Walk in Pasay City, while real estate sales remain strong in other key, strategic areas. We look forward to ending the year with sustained growth and momentum,” Federal Land president Alfred V. Ty said.

Toyota Manila Bay Corp. and Toyota Cubao Inc. attained combined revenues of P12 billion for the first nine months of this year, while combined net income of the two Toyota dealerships increased 24 percent year-on-year to P122 million.

A rebalancing of capital gains on investments realized in 2013, however, affected Philippine AXA Life Insurance Corp.’s profits as it dropped to P800 million from P1 billion last year.

Higher-than-normal claims and losses from Typhoons Agaton, Glenda and Mario, meanwhile, pulled down Charter Ping An Insurance Corp.’s earnings to P102 million from P155 million last year.