GT Capital income seen growing 19%

TY-LED GT Capital Holdings Inc.’s net income will likely expand by 19 percent this year, fueled by the continued robust growth of its automobile and banking businesses, Maybank Investment Banking Group said on Friday.

In a report, Maybank said Metropolitan Bank and Trust Co. (Metrobank) and Toyota Motor Philippines (TMP) would remain the growth drivers for GT Capital, accounting for a combined 80 percent of consolidated earnings in 2024.

GT Capital’s automobile business greatly benefited from a 15.5-percent improvement in motor vehicle sales in January 2024 as TMP held the biggest market share at 47.2 percent, Maybank noted.

Metrobank, meanwhile, is forecast to deliver a 12-percent net income growth this year on the back of a “healthy increase in lending, still-high net interest margins and lower provisions.”

Metrobank earlier reported that net income had surged 28.9 percent last year to P42.2 billion from P32.8 billion in 2022.

“Metrobank remains the biggest income contributor at 50 percent, followed by TMP at 25 percent,” Maybank said.

However, one downside to growth prospects this year is an increase in nonperforming loans at GT Capital’s nonbank auto financing subsidiary, Toyota Financial Services.

GT Capital reported a net income of P23.09 billion in the first nine months of 2023, up 54 percent from P14.95 billion a year earlier.

It is expected to announce full-year 2023 financial results in the last week of this month.

GT Capital shares were up by P11.50, or 1.7 percent, at P687 each on Friday.