GT Capital earns 6% more in 2014

MANILA, Philippines - GT Capital Holdings Inc. booked a modest profit growth last year in the absence of a non-recurring gain that offset higher income contribution from its operating units.

In regulatory filing, the investment firm of banking tycoon George S.K. Ty said net income rose six percent last year to P9.2 billion from P8.6 billion in 2013 when the company recorded a P2-billion non-recurring income.

Earnings in the fourth quarter of 2014 alone, however, surged 214 percent year-on-year to P2.8 billion due to the significant growth in the core net income of its life insurance company AXA Philippines, Federal Land Inc., Toyota Motor Philippines Corp. and Metropolitan Bank and Trust Co.

Core net income for full year 2014 grew 38 percent to P9.1 billion from P6.6 billion the previous year.

“GT Capital concluded 2014 with its component companies largely meeting high expectations. This was achieved by leveraging on our core strengths and the strategic partnerships formed with global brands that provide technical expertise. This unique business model allows the group to deliver sustainable healthy results,” GT Capital chairman Francisco C. Sebastian said.

The conglomerate said revenues in 2014 were also robust as it increased 35 percent to P143.1 billion from P105.7 billion the previous year.

GT Capital attributed the revenue growth mainly to the solid performance of  component companies, specifically “the record-setting vehicle sales of Toyota Motor Philippines, improved net fees of Global Business Power Corp. (GBPC), and the strong real estate sales of Federal Land.”

“As initially planned, GT Capital has now attained a more evenly distributed income contribution profile from its subsidiaries and affiliates. We face 2015 and beyond with renewed confidence in the group’s inherent capabilities, as we continue to bolster organic growth while looking out for new diversification opportunities for our portfolio,” Sebastian said.

In 2014, GT Capital said Toyota Motor Philippines, the largest and most dominant car brand in the country, sold an all-time record of 106,110 vehicles for a year-on-year growth of 40 percent in a market that only grew 27 percent.

GBPC, meanwhile, posted an 18 percent year-on-year jump in net income to P2.3 billion and a 12 percent increase in revenues to P19.2 billion last year.

“Growth in 2014 was predominantly driven by increased demand from bilateral customers,” GT Capital said.

GT Capital’s real estate business also performed well last year with net income reaching P1.5 billion, 48 percent better than the P1 billion recorded the previous year.

“Federal Land ended the year positively on all fronts, realizing a 28- and 22-percent growth in real estate sales and rental income, respectively. This further encourages us to continue building communities and launching new projects that provide high-quality residential, office, and retail-commercial spaces,” said Federal Land president Alfred V. Ty.

Metrobank’s consolidated net income reached P20.1 billion last year, with the bank’s strong performance driven by robust growth in loans and deposits.