GT Capital eked out profit, though down 60%, in grueling H1
The Ty family’s GT Capital Holdings Inc. managed to stay profitable in the first semester of 2020 even as the COVID-19 pandemic dragged down its core businesses in banking, property and car sales.
GT Capital said in a stock exchange filing on Monday that net income from January to June amounted to P2.74 billion, down more than 60 percent.
The decline came as its major subsidiaries were affected by the lockdown and subsequent economic downturn.
Metropolitan Bank and Trust Co. saw profits fall 30 percent to P9.1 billion as it boosted provisions for potential business losses to P22.8 billion.
Toyota Motor Philippines posted a profit of P1.03 billion versus P4.4 billion in the same period last year.
Federal Land also posted a net income of P171 million, down 57 percent.
Manuel V. Pangilinan-led Metro Pacific Investments Corp., where GT Capital has a major stake, saw its core profit drop 38 percent to P5.3 billion.
AXA Philippines, however, managed to grow profits by 29 percent to P1.5 billion despite the challenging environment.
“We continue to closely monitor the development of the COVID-19 pandemic with concern,” GT Capital president Carmelo Maria Luza Bautista said in a statement.
Despite the slowdown, Bautista said GT Capital was “well-positioned to ride out the impact of this pandemic.” The firm’s major focus now is ensuring the safety of employees and services to customers, according to Bautista.
Throughout the enhanced community quarantine period, GT Capital supported almost 26,000 employees. Additional compensation and other support measures have also been extended to front-liners. All these amounted to approximately P1 billion.
“Assistance was also provided to affected customers through grace periods for monthly amortizations, lease collections and insurance premium payments, among other initiatives,” GT Capital said.
It also donated P217.2 million in various programs to combat COVID-19. These are managed by the Metrobank Foundation and the GT Foundation. —MIGUEL R. CAMUS INQ
