GT Capital reports strong 9-month earnings

MANILA, Philippines — Conglomerate GT Capital Holdings Inc. saw its earnings nearly tripled in the past three quarters driven by strong growth across all its ventures especially its banking and auto businesses.

Consolidated net income grew 168% year-on-year to P8.7 billion in the first nine months, the Ty-led company said in a statement to the stock exchange on Monday. GT Capital is yet to release its full financial results as of reporting.

Shares in GT Capital was trading up 0.78% as of 10:41 a.m. following the announcement, defying losses in the main index. Carmelo Maria Luza Bautista, company president, attributed GT Capital's growth to the Philippines’ improving pandemic situation, as cases decline while mass vaccination gathers steam.

“The more recent decline in reported Covid-19 cases, the lifting of mobility restrictions, and the increased number of fully vaccinated individuals in key cities have resulted in a noticeable resurgence of consumer confidence,” Bautista said.

Metropolitan Bank & Trust Co. (Metrobank), the conglomerate’s banking unit, reported a net income of P16.1 billion during the January-September period, up 46% compared with a year ago. But much of that growth came from money that Metrobank already had on hand, after the lender pared down its rainy day funds as the rise of bad loans eased.

During the period, Toyota Motor Philippines, GT Capital’s automotive business, saw its bottom-line grow 112% on-year to P4.6 billion. That performance was bolstered by improving sales, with Toyota having sold 92,318 units in the past nine months, a 25% jump on an annual basis.

On the property segment, GT Capital’s subsidiary Federal Land Inc. booked a consolidated net income of P904 million in the first nine months, which translated to a 425% on-year increase. The conglomerate credited Federal Land’s growth to “stable construction activities and stronger project sales”.

But GT Capital’s insurance business, AXA Philippines, was an outlier in the past three quarters. During the period, AXA’s consolidated net income fell 4% year-on-year to P2.2 billion. GT Capital did not explain the decline in the insurer’s bottom-line figure, although it said single premium sales grew a “noteworthy” 80% year-on-year.

Meanwhile, listed infrastructure investment firm Metro Pacific Investments Corp, where GT Capital has a stake of about 16%, raked in a core net income of P9.5 billion in nine months, up 23% from a year ago. GT Capital said this was largely driven by improved traffic on MPIC’s toll roads as restrictions wind down, as well as higher volume of electricity sold by Manila Electric Company (Meralco), MPIC’s power business.

“This gradual return to pre-pandemic conditions will result in positive momentum for the last quarter of the year, paving the way for an even more robust recovery in the coming year,” Bautista, the company president, said.