Boosted by economic reopening, GT Capital reports gains in first 9 months

MANILA, Philippines — Conglomerate GT Capital Holdings, Inc. capitalized on a reopened Philippine economy as profits from its various business interests ballooned in the first nine months. 

In a disclosure sent to the Philippine Stock Exchange on Monday, the conglomerate reported a consolidated net income that surged 72% year-on-year to P8.7 billion in the first three quarters. 

Core net income soared 41% on an annual basis to P11.3 billion during the period. 

“The recovery momentum of our businesses remained steady despite rising inflation, interest rates, and foreign exchange volatility. Strategic initiatives undertaken over the past years are now coming to fruition,” said GT Capital president Carmelo Maria Luza Bautista. 

Its banking arm, Metropolitan Bank & Trust Company (Metrobank), saw its net income improve 41% on-year to P23.4 billion in the first nine months. Profits in the third quarter skyrocketed 77% on an annual basis.

Metrobank’s gross loans issued grew 12% year-on-year, valued at P1.4 trillion, in the first three quarters. This was due in a part to a low-interest rate environment, as the Bangko Sentral ng Pilipinas slashed interest rates in November 2020 to facilitate credit growth. The central bank just started its tightening cycle in May, in a bid to cool down inflation. 

As it is, Metrobank noted that the loans growth was supported by double-digit growths in its corporate and commercial lending and a 22% increase in credit card payments. 

Its vehicle segment, Toyota Motor Philippines (TMP), saw its revenues expand 41% on-year to P133.4 billion in the first nine months. Net profits stayed flat on account of the depreciating peso. 

TMP reckoned vehicle sales surged 35% on-year to 124,884 units from January to September. Sales kept pace on how pandemic curbs fared. Businesses pencilled in purchases when the economy allowed greater activity.

TMP is looking to sell 162,000 vehicle units in 2022. 

GT Capital’s property subsidiary, Federal Land Inc., reported its bottom-line sykrocketed 365% year-on-year to P4.2 billion from January to September. This was due in part to its resurgent reservation sales, which grew 73% on-year to P13.7 billion in the same period. 

Associate company Metro Pacific Investments Corp’s net income in the first nine months grew 25% year-on-year to P11.8 billion. 

On the other hand, its insurance arm, AXA Philippines, reported a lower profit haul. Its life and general insurance gross premiums retreated 31.4% year-on-year to P22.5 billion in the first nine months. AXA attributed the decline to “limited bancassurance distribution” during strict pandemic curbs in January and volatile capital markets.