Ty family-led conglomerate GT Capital Holdings saw a 26-percent year-on-year drop in first-quarter net profit to P2.54 billion due to slower earnings contribution from its automotive, banking, infrastructure and insurance businesses.
The profit slowdown, however, was tempered by higher earnings chalked up by the property development business under Federal Land and financing business under Sumisho Motor Finance Corp.
Excluding nonrecurring items, core net income attributable to equity holders of the parent company declined by 15 percent year-on-year to P2.84 billion in the first quarter.
Automotive operations under Toyota Motors Philippines comprising the sale of assembled and imported auto vehicles and spare parts decreased by 15 percent year-on-year to P32.78 billion in the first quarter. This was due to a 21-percent drop in wholesale volume from 32,394 units to 25,636 units.
Real estate sales and interest income on real estate sales, on the other hand, grew by 33 percent to P2.39 billion in the first quarter.
Equity in net income of associates and joint ventures declined by 19 percent year-on-year to P2.68 billion in the first quarter, primarily due to year-on-year decreases in the net income of the following associates, as follows:
Metrobank’s net income fell by 9.3 percent to P6.12 billion due to a significant increase in provisions for credit and impairment losses, but partially mitigated by increased ownership by GT Capital from 36.36 percent in the first quarter of 2019 to 37.15 percent in the first quarter of 2020;
Metro Pacific Investments Corp.’s net income fell by 47.5 percent to P1.86 billion due to noncore expenses, primarily the provisioning in full of the carrying value of Meralco’s investment in Pacific Light Power; and,
AXA Philippines’ net profit fell by 54 percent to P370 million due to unrealized equity losses in the life insurance business.
Rent income mainly from the GT Tower International office building, Blue Bay Walk, Met One and Florida Sun Estates increased by 36 percent to P410 million, while commission income decreased by P6.52 million to P66.64 million in the first quarter due to the a decline in revenues recognized from sales of Federal Land’s Grand Hyatt Residences. INQ