Banking lifts LTG earnings, tobacco unit falters

Philippine National Bank (PNB) — INQUIRER.net photo

LT Group Inc., the listed holding company of taipan Lucio Tan, booked a 3-percent increase in profits in the first nine months of the year to P19.82 billion, with its liquor and brewery units offsetting declines in its tobacco arm.

In a statement on Tuesday, LT Group said Philippine National Bank had accounted for the bulk of earnings at 43 percent, followed by the tobacco business at 40 percent. Tanduay Distillers Inc. contributed 8 percent and Asia Brewery Inc., 4 percent.

PNB earnings in the January to September period reached P15.06 billion, up by 11 percent as its loan portfolio grew. Net interest income expanded by 10 percent to P36.48 billion.

READ: Tobacco unit pinches LT Group bottom line

The tobacco business saw a 12-percent decline in profits to P7.94 billion, owing to lower cigarette volume at Philip Morris Fortune Tobacco Corp., reflecting the overall weakness in the industry.

Tanduay’s net income, meanwhile, surged by 31 percent to P1.51 billion on higher liquor and bioethanol volumes.

Revenues jumped by 15 percent to P24.61 billion on increased sales volume and higher selling prices.

At the same time, net income of Asia Brewery soared by 59 percent to P715 million, driven by higher sales volumes across its major product lines. Revenues likewise increased by 8 percent to P13.79 billion.

Real estate under Eton Properties Philippines Inc. reported a 44-percent climb in earnings to P499 million on the back of higher leasing revenues.

Eton currently has 288,000 square meters (sq m) in its leasing portfolio, 192,000 sq m of which are dedicated to office spaces. —Meg J. Adonis