MANILA, Philippines - GT Capital Holdings Inc., the investment vehicle of banking tycoon George S.K. Ty, more than doubled its profit in the first half to P4.02 billion, fueled by one-time gains as well as the strong growth of its real estate, power and automotive units.
In a report, it said core net earnings amounted to P2.6 billion, 51 percent more than the previous period’s level. Total revenues also grew two-fold 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 Federal Land.
“The Philippine economy sustained its positive performance during the first half of the year. This favorable macroenvironment, together with specific positive developments in their respective industries, added the component companies of GT Capital in delivering encouraging results for the period. Looking forward, we remain confident that we are on track in meeting our full-year objectives,” said GTCapital chairman Arthur Ty.
FedLand showed solid performance, posting net earnings of P1.7 billion or more than eight times the P201 million recorded a year ago, on buoyant sales. Core earnings likewise grew 48 percent.
“The company’s offerings, composed mainly of high-quality mid-market residential condominium units that are strategically located in Metro Manila, continue to gain further traction, resulting in sustained brisk sales. Aware of the stable demand for primary homes, we are further committed to our plans of launching new projects in response to the vital needs of the market,” FedLand president Alfred Ty said.
GBPC likewise saw its profit rise more than two-fold 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, resulting from 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. Non-performing loans ratio improved to 2.2 percent, with total capital adequacy ratio likewise strengthening to 18.5 percent.
Meanwhile, earnings of insurance unit AXA Life declined 10 percent due to a 183 percent surge in regular premium linked sales, resulting in a corresponding front loading of legal policy reserves and commission and bonus expenses. Total sales reached P1.3 billion, up 46 percent year on year. This translated to a 29 percent rise in premium revenues to P5.9 billion.