GT Capital earnings up 29% in 2017

GT Capital Holdings Inc., the investment vehicle of banking tycoon George Ty, grew its net income by 29 percent to P15 billion last year from P11.7 billion in 2016 on the strong performance of its automotive, banking, and infrastructure businesses.

The diversified conglomerate has a wide range of businesses in its portfolio: Toyota Motor Philippines Corp. (TMPC), Metropolitan Bank & Trust Co., AXA Philippines, Metro Pacific Investments Corp. (MPIC), Federal Land Inc. and Property Co. of Friends.

GT Capital churned in revenues of P239.8 billion, up 19 percent from P202.1 billion the previous year.

Strong auto unit sales from TMPC, as well as improved results from associates Metrobank, AXA Philippines and MPIC, all contributed toward GT Capital’s revenue growth, the company said in a disclosure yesterday.

GT Capital president Carmelo Maria Luza Bautista said they expect to sustain growth as the country’s economy continues to expand.

“Our full-year 2017 results show encouraging growth momentum, with core net income up by 29 percent. GT Capital’s key sectors continue to be in the sweet spot, in line with our country’s stage of economic development, reaping demographic dividends,” Bautista said.

Among the different segments, Metrobank reported a consolidated net income of P18.2 billion in 2017, up 10 percent on a core basis., driven by robust growth in loans and deposits, which in turn resulted in improved margins as well as better operating leverage.

Toyota, the country’s top automotive company, grew its net income 11 percent to P13.4 billion from P12.1 billion previously.

It achieved a 19 percent growth in consolidated revenues to P185.3 billion last year from P155.8 billion a year ago.

Retail sales volume grew 16 percent to 183,908 units last year from 158,728 units in 2016.

“Toyota maintained its industry-leading position with an overall market share of 39 percent, reinforced by continued strong sales from the Fortuner, Vios and Innova models,” GT Capital said.

MPIC, meanwhile, reported a 17 percent rise in consolidated core net income to P14.1 billion from P12.1 billion in 2016 on the strength of its increased presence in the power industry. GT Capital has a strategic partnership with MPIC, the tollways and infrastructure conglomerate chaired by Manuel V. Pangilinan.

The conglomerate’s property developers, Federal Land, and Property Co. of Friends Inc. (Pro-Friends), attained a combined P18.2 billion in consolidated revenues last year, a five percent growth from the P17.3 billion achieved in 2016.

Combined real estate sales in 2017 grew by eight percent to P15.4 billion from P14.2 billion the previous year. The two property companies together reported an aggregate net income of P2.1 billion in 2017.

AXA Philippines, for its part, also achieved a substantial 42 percent growth in stand-alone life insurance net income to P2.4 billion in 2017 from P1.7 billion in 2016.