GT Capital earnings down as challenges hit property unit
A steep decline in the profit of its real estate unit offset gains in the core businesses of GT Capital Holdings Inc., resulting in lower earnings for the Ty family-led conglomerate last year.
In a stock exchange filing on Wednesday, GT Capital said its net income ended at P28.8 billion, down 1.71 percent.
Core earnings, which exclude one-time gains from lot sales and incentives under the Comprehensive Automotive Resurgence Strategy program, climbed by 11 percent.
This was driven mainly by Metropolitan Bank and Trust Co. (Metrobank) and Toyota Motor Philippines (TMP), with both companies reporting record-high earnings.
GT Capital has yet to disclose its full financial statement bearing more details.
Remains optimistic
“We remain optimistic that our core businesses will sustain this growth momentum moving forward,” GT Capital president Carmelo Maria Luza Bautista said in their disclosure.
Meanwhile, a challenging market environment hit the earnings of Federal Land Inc., resulting in the decline in GT Capital’s net income.
Broken down, Metrobank’s earnings grew 14 percent to an all-time high of P48.1 billion on the back of its asset expansion.
Net interest income at the country’s fourth-largest bank was up by 8.7 percent to P114.1 billion due to a 17-percent increase in gross loans.
Despite the expansion, Metrobank’s nonperforming loan ratio eased to 1.43 percent from 1.69 percent.
Automotive giant TMP grew its net income by 15.3 percent to P15.9 billion as its retail sales volume went up by a tenth to 218,019 units sold.
This accounts for nearly half of the industry’s 473,842 total sales as of end-December, according to GT Capital.
Meanwhile, Federal Land’s bottom line slid by 64 percent to P750 million despite launching new projects, reflecting the industry’s overall weakness last year.
At the same time, GT Capital affiliate Metro Pacific Investments Corp., in which the Ty-led conglomerate holds a 20-percent stake, delivered record earnings of P23.6 billion, up by 21 percent on gains from its power and water units.
