LT Group profit up 49.5% to P16.2B

Tycoon Lucio Tan-led conglomerate LT Group Inc. grew attributable net profit last year by 49.5 percent to P16.2 billion on higher earnings across its banking, tobacco, liquor and property businesses.

Banking arm Philippine National Bank (PNB) reported a net profit of P9.6 billion last year, 17 percent higher than the previous year, as gains from asset disposal complemented the expansion in core businesses.

In terms of earnings contribution, PNB contributed P5.47 billion or 33 percent of total, while the tobacco business accounted for P8.72 billion or 54 percent of total.

Tanduay Distillers Inc. (TDI) added P890 million or 5 percent. Eton Properties Philippines Inc. (Eton) contributed P479 million while Asia Brewery Inc. (ABI) provided P421 million, each accounting for 3 percent of total.

The 30.9-percent stake in Victorias Milling Company Inc. (VMC) added P247 million, or 2 percent of total.

For PNB, total operating income improved by 20 percent to P38.9 billion on the back of increases in core revenues as well as gains from asset disposals. Net interest income grew by 23 percent to P27 billion, driven by the 19-percent expansion in loan book and an improvement in net interest margin to 3.3 percent from 3.1 percent.

The tobacco business under Fortune Tobacco Corp. reported an income of P8.75 billion for 2018. Earnings nearly doubled from the previous year’s P4.4 billion.

For Tanduay Distillers Inc., net income last year grew by 44 percent to P909 million despite the surge in inflation last year. Tanduay was ranked as the world’s No. 1 rum in 2018. —DORIS DUMLAO-ABADILLA

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