GT Capital posts 31 pct net income growth to P8.6B

By Neil Jerome C. Morales, The Philippine Star

Posted at Apr 12 2014 08:22 AM | Updated as of Apr 12 2014 04:22 PM

MANILA, Philippines - Higher income contribution from its operating units allowed GT Capital Holdings Inc. to book a hefty profit growth last year.

In regulatory filing, the investment firm of banking tycoon George S.K. Ty reported P8.6 billion in net income last year, up 31 percent from P6.6 billion the previous period.

“The increase was principally due to the 359-percent improvement in consolidated revenues which grew to P105.5 billion from P23 billion a year ago,” GT Capital said.

Major contributors to the revenue growth were the consolidation of Toyota Motor Philippines Corp. (TMP), whose P74.4-billion auto sales accounted for 70 percent of total revenues; consolidation of Global Business Power Corp. (GBPC) that recorded P16.9 billion in net fees or 16 percent of total revenues; and consolidation of Charter Ping An Insurance Corp. that posted P500 million in net premiums.

GT Capital said it also benefited from P5.5 billion in real estate sales and interest income on real estate sales from Federal Land Inc., and equity in net income from associates Metropolitan Bank & Trust Co. (Metrobank), Philippine AXA Life Insurance Corp. and other jointly-controlled entities of Federal Land that amounted to P3.6 billion.

The conglomerate also received P2 billion in non-recurring income from the consolidation of TMP.

“Excluding TMP’s non-recurring income of P2 billion and adding back one-time taxes and other non-recurring expenses of P669 million, GT Capital’s core net income attributable to shareholders amounted to P7.2 billion, representing a 34-percent increase from P5.4 billion of the previous year,” the company said.

“Of the seven component companies, Metrobank, Federal Land, TMP, AXA Philippines, and Toyota Manila Bay Corp. (TMBC) posted double-digit growth in net income,” it added. However, GBPC and Charter Ping An bucked the trend and recorded lower net income.

Net income of power producer GBPC dropped due to soft coal and diesel prices that declined 15 percent and eight percent year-on-year,  respectively. It was also hit by lower Wholesale Electricity Spot Market (WESM) prices that resulted in a 36-percent fall in WESM margins.

“Charter Ping An, likewise, registered a drop in its net income due to higher than normal claims and losses arising from the series of natural calamities that occurred in the second half of 2013,” GT Capital said.