GT Capital sees boost from better economy

Improving macroeconomic conditions in the country are expected to give GT Capital Holdings Inc. a boost in its profit this year. This, especially after posting record first-quarter results.

“With inflationary pressures easing, consumer spending exhibiting continued traction and a stable foreign exchange outlook, we are well-positioned to sustain this upward trajectory,” GT Capital president Carmelo Maria Luza Bautista said in a statement on Friday.

Global trade tensions have been dampening economists’ outlook on Philippine growth. But some noted that this allowed more room for the Bangko Sentral ng Pilipinas to cut rates.

A monetary policy easing is meant to help spur economic activity.

The Ty family-led conglomerate reported a 29-percent surge in its bottom line in the first quarter. This reached P9.14 billion, GT Capital’s highest first-quarter earnings so far.

The company said growth was on the back of gains from Metropolitan Bank and Trust Co. (Metrobank) and Toyota Motor Philippines Corp. These offset a steep decline in its real estate business.

Metrobank reported a 2.5-percent growth in earnings during the period. This reached P12.3 billion on loan growth and strong fee and trading income.

Net interest income inched up by 2.4 percent to P29.4 billion. A 21.4-percent increase in auto loans provided a lift.

Auto sales

Toyota’s profit in the January to March period zoomed by 57.1 percent to P6.33 billion. This was driven by its retail sales volume, which climbed by a tenth to 55,513 units.

This accounted for 47.3 percent of the automotive industry’s total sales of 117,466 vehicles during the quarter, GT Capital said.

PSEi gains on hopes of easing trade war

Developer Federal Land Inc. slashed its bottom line by 59.3 percent to P118.5 million due to lower real estate sales.

Lot sales declined, resulting in a 13.9-percent dip in property sales to P1.2 billion. Without the one-time gain from lots sold a year ago, real estate sales would have grown by 14 percent.

Metro Pacific Investments Corp., in which GT Capital holds a 20-percent stake, saw a 36-percent surge in its net income. This registered at P11.5 billion on gains from its power and water businesses.

This year, GT Capital plans to invest up to $200 million in a new category and expand its portfolio.

GT Capital chief financial officer George Uy-Tioco Jr. previously told reporters they were in “active discussions” regarding potential opportunities. However, they had not yet identified a specific sector to bring in to the business.