GT Capital’s six-month profit up 42% to P5.6B

TY family-led conglomerate GT Capital Holdings Inc. grew its first semester net profit by 42 percent year-on-year to P5.6 billion on higher earnings from its automotive, banking, power and insurance businesses.

Six-month consolidated revenues increased by 12 percent year-on-year to P74.3 billion, driven by the record-setting vehicle sales of Toyota Motor Philippines Corp. (TMP) and greater net income contributions from other associates, the conglomerate reported to the Philippine Stock Exchange on Friday.

“GT Capital’s January to June results were at pace with our expectations. From the beginning of the year, our key component companies mostly sustained their revenue and income expansion, at times outperforming the industries in which they operate. Supported by benign inflation, heftier government spending, and the overall positive macroeconomic indicators projected for the rest of 2015, we remain confident in continuing the momentum we have achieved,” GT Capital chair Francisco Sebastian said.

Banking arm Metropolitan Bank & Trust Co. (Metrobank) remained the biggest contributor to group-wide net income. Metrobank reported a 30 percent increase in first-semester core net profit, with unaudited consolidated net income of P9.3 billion.

The next biggest profit contributor was TMP, whose six-month net income grew by 69 percent year-on-year to P5.1 billion on the back of a 9-percent rise in revenues to P53.4 billion. The country’s leading automotive company sold 57,717 vehicles during the first six months, 19 percent higher year-on-year. Overall retail market share remained dominant at 39 percent.

Power unit Global Business Power Corp. (GBPC) chalked up a first semester net income of P1.2 billion, marking a 26 percent increase year-on-year even as net fees eased to P8.9 billion from P9.2 billion in the previous year.

Life insurance unit AXA Philippines boosted net profit by 27 percent year-on-year to P710 million, attributed to the robust increase in operating margins despite lower investment returns arising from market volatility.

Meanwhile, property arm Federal Land Inc. posted a six-month net profit of P690 million, slowing from the P720 million bottom-line in the same period last year. Six-month real estate sales amounted to P3.5 billion, rising by 6 percent while rental income rose by 24 percent year-on-year to P390 million.

As an indicator of future revenue growth from residential development, first semester reservation sales reached P6.3 billion or 6 percent higher than the level in the same period last year.

“Federal Land continues to strengthen its presence in the country’s still burgeoning property development sector. From our initial offering of upper mid-end condominiums to master-planned communities, we now give equal focus to horizontal residential projects. Federal Land’s recent joint venture with Alveo Land and GT Capital’s investment into Pro-Friends will enable our group to provide a broader range of quality residential, office, and retail space,” Federal Land president Alfred Ty said.

GT Capital recently signed a deal to buy into affordable housing developer Property Company of Friends Inc. (PCFI), the key operating unit of the Pro-Friends Group that was planning to go public. The conglomerate will buy an initial 22.68 percent of PCFI for P7.24 billion plus an option to increase its stake to 51 percent within the next three years.