GT Capital upbeat for ‘strategic’ 2024
TY-LED conglomerate GT Capital Holdings Inc. is keen on boosting its core businesses — property, automotive and banking — while also pursuing opportunities in new growth areas.
The group is “setting the stage for a strategic 2024,” GT Capital Chairman Francisco Sebastian and President Carmelo Maria Luza Bautista said in a joint statement last week.
“We have earmarked substantial resources in capital expenditures (capex) to drive this expansion, signaling a positive outlook for the future,” the statement read.
GT Capital has allocated up to P32.4 billion for capex this year, with the bulk, or P14.5 billion, earmarked for strategic acquisitions, investments and debt repayments at the parent level.
Sebastian and Bautista said the investments underscored the conglomerate’s commitment to “strengthening the foundation of our diverse business portfolio.”
“We are in the preliminary stages of exploring strategic partnerships and investments in the healthcare and renewable energy sectors, reflecting our commitment to diversification and sustainable growth,” they added.
“This strategic allocation of resources, coupled with our exploratory initiatives in new areas, reflects GT Capital’s unwavering dedication to achieving its strategic objectives.”
Metropolitan Bank and Trust Co. (Metrobank) is backed by a P5-billion budget, while property arm Federal Land and automotive unit Toyota Motor Philippines Corp. (TMP) have been allocated capex budgets of P5.9 billion and P5.8 billion, respectively.
“Federal Land is poised to develop key projects, aiming to further cement its position in the property sector. TMP, a pivotal player in the automotive sector, continues to introduce new models and enhancements,” the group’s top two officials said.
Most of Metrobank’s budget, meanwhile, will fund information technology investments and support other vital units engaged in automotive financing and dealership, insurance, infrastructure, and utilities.
Investments this year will be financed by a combination of internally generated funds and debt borrowings.
GT Capital reported a 57-percent increase in its 2023 net income to P28.7 billion, while core income surged by 82 percent to P28.8 billion on higher contributions from its banking, real estate, and automobile businesses.
The conglomerate’s share price dropped 1.27 percent to close at P620 last Friday amid a 0.47-percent downturn for the benchmark Philippine Stock Exchange index.