MANILA, Philippines - GT Capital Holdings Inc., the flagship investment firm of banking tycoon George S.K. Ty is laying the groundwork that will ensure long-term growth, a top company executive said yesterday.
“Right now, we are trying to lay the foundation for growth,†GT Capital president Carmelo Maria Luza Bautista said.
For instance, Bautista said financial service unit Metropolitan Bank & Trust Co. recorded an earnings surge in the first half due to trading gains that might not be replicated next year.
In the first half, GT Capital’s consolidated net earnings surged to P4 billion from P1.3 billion. 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.
For the second half, the company is banking on the strong economic growth, which translates to higher car sales, bank deposits and power consumption, Bautista said.
“We are a direct beneficiary of the economic growth, which is consumption and services driven,†Bautista said.
GT Capital is banking on the automotive and property businesses to grow its income next year.
In particular, the launch of the all new Vios, Toyota’s best selling model, will increase sales of Toyota Motor Philippines, which is 51 percent owned by GT Capital, Bautista said.
Toyota targets to grow its dealer network to 45 at the end of 2013, 51 in 2014 and 65 in 2015, with the expansion focusing outside Metro Manila, Bautista said.
The company is also expecting to recognize real estate sales from various projects of Federal Land Inc. like the Veritown Fort and the Grand Hyatt Manila Residences, Bautista said.
In November, subsidiary Global Business Power Corp. broke ground for the 82-megawatt (MW) clean coal-fired power plant expansion project in Cebu. The same clean coal technology is being used in Cebu Energy’s 246-MW and Panay Energy’s 164-MW power plants.