GT Capital net income rises, surpasses pre-pandemic level

TY-LED GT Capital Holdings, Inc. reported on Tuesday a 7.1% increase in first-quarter net income for parent firm equity holders to P4.36 billion after a double-digit jump in revenues, driven by the growth of its banking and automo-bile units.

Core net income for the first quarter of the year was placed at P4 billion, up 18%, while after-tax profit reached P5.48 billion, or an increase of 9% year on year.

“Our financial results show the growth momentum from last year carried over into the first three months of 2022. At these levels, we have already surpassed our first quarter 2019 pre-COVID core income by 18%. This is a very encouraging indicator,” GT Capital President Carmelo Maria Luza Bautista said.

“Despite the headwinds of inflation, higher interest rates, market disruptions caused by the pandemic, and the more recent geopolitical events, we are confident that our recovery momentum is sustainable,” she added.

Metropolitan Bank & Trust Co.’s (Metrobank) net income in the first three months of the year hit P8 billion, or 2.7% higher year on year.

“We are encouraged by the sustained pickup in economic activities as Metrobank stands ready to support our clients in their funding plans and investment needs,” said Metrobank President Fabian S. Dee.

“The strategies that we have put in place should enable the bank to achieve sustainable growth, along with the expanding domestic economy,” he added.

During the quarter, gross loans rose 5% to P1.3 trillion year on year, led by a 10% expansion in corporate lending and an 8% increase in credit card receivables.

Meanwhile, Toyota Motor Philippines Corp. (TMP) recorded a 4.1% increase in net income to P2.07 billion from P1.99 billion, while its consolidated net income grew 5% to P2.1 billion.

The profit rise came after consolidated revenues increased by 24% to P42.1 billion from P33.9 billion in the previous year, as retail vehicle sales increased by 12% in the January-March period.

TMP continued to expand its model lineup in the first quarter by launching three new model variants — the Rav4 HEV and Raize in February, and the Avanza in March.

“The first quarter of 2022 saw a sustained rise in vehicle sales for both the industry and Toyota. Without the drop in deliveries in January due to the Omicron variant surge, the recovery would have been much further along. Toyota recorded exceptional results for February and March, with sales peaking at over 15,000 units in March, the highest monthly sales since the pandemic started in 2020,” TMP Chairman Vince S. Socco said.

Mr. Socco added that TMP was able to further stimulate demand through sustained new model offerings in the mass market segments, which contributed to a spike in market interest.

“As well, the industry is feeling the return of corporate demand on the heels of the resumption in business activity. Renewal of company fleets is reflected in the rise of planned capital expenditures. With the peaceful conclusion of the elections, the continued reopening of the economy and the expected continuation of government infrastructure programs, 2022 is expected to return to pre-COVID sales levels,” he added.

GT Capital’s property subsidiary Federal Land, Inc. reported that net income attributable to equity holders of the parent dropped by 4.9% to P311.2 million from P327.3 million.

Total revenues increased by 14% to P2.8 billion, with real estate sales amounting to P1.8 billion, up 10%.

Federal Land forged a partnership with Japanese real estate developer Nomura Real Estate Development Co., Ltd. to form a new company, Federal Land NRE Global, Inc.

Nomura will be investing $324 million, representing 34% of the total capital investment of FNG at P48 billion.

Meanwhile, Metro Pacific Investments Corp. reported a consolidated core net income of P3.1 billion for the first quarter, up 23% from a year earlier.

However, reported net income attributable to the parent company ended lower by 19% to P5.68 billion from P7.03 billion in 2021, as a result of the sale of Global Business Power Corp. and Don Muang Tollways.

“Metro Pacific benefited from continued economic recovery and intensified election-related activities in the country. Toll road traffic is now close to pre-pandemic levels, and power consumption has considerably increased as more industries ramp up operating capacity,” GT Capital said.

Following a series of debt refinancing and re-rating activities implemented in 2021, the company said it is now “enjoying the benefits of a significant reduction in its average interest rates, evidenced by the 11% decline in net in-terest costs for the first quarter.”

Lastly, the company’s insurance subsidiary, AXA Philippines, reported that its consolidated net income increased by 32% to P427 million from P324 million in the previous year, due to lower claims for natural calamity losses.

Meanwhile, consolidated life and general insurance gross premiums went down by 34.3% to P8.21 billion due to limited bancassurance distribution during the Omicron variant surge in January and the volatility in the capital markets amid geopolitical uncertainties.

At the stock exchange on Tuesday, GT Capital shares were up by 4.28% or P21 to close at P512 each. — Luisa Maria Jacinta C. Jocson