TY-LED conglomerate GT Capital Holdings, Inc. recorded a 33% decline in its second-quarter (Q2) attributable net income to P6.67 billion from P9.95 billion last year due to lower revenue and higher expenses.
“This was principally due to the 2% decline in consolidated revenues due to the absence of significant lot sales realized by the parent company and Federal Land, Inc., which was partly offset by 11% growth in automotive operations,” GT Capital said in a regulatory filing on Thursday.
Total revenue for the April-to-June period fell by 2% to P76.65 billion compared with P78.42 billion a year ago. Consolidated costs and expenses increased by 4% to P66.57 billion from P63.72 billion last year.
For the first half, GT Capital saw a 17% decline in its attributable net income to P13.78 billion from P16.58 billion last year.
Revenue rose by 1.7% to P150.75 billion compared with P148.22 billion in 2023. Consolidated costs and expenses increased by 5.6% to P129.87 billion from P123.04 billion a year ago.
“Coming off the record performance in 2023, GT Capital continued to show positive growth in the first half of 2024. Excluding nonrecurring items from the previous year, core net income increased by 5%,” GT Capital President Carmelo Maria Luza Bautista said.
“During the first six months of 2024, GT Capital continued to deliver sustained performance in our key businesses, particularly Metrobank’s considerable net income growth and Toyota Motor Philippines Corp. (TMP) record retail sales volume of 104,350 units for six months,” she added.
Ms. Bautista said the conglomerate is optimistic that it will see further growth for the remainder of 2024.
“With seasonal demand expected to pick up in the last two quarters of the year, we approach the second half with measured optimism for more encouraging growth,” she said.
“We remain encouraged by the strong core business fundamentals of GT Capital and the resiliency of the domestic economy,” she added.
For the banking segment, Metropolitan Bank & Trust Co. (Metrobank) grew its first-half net income by 13% to a record P23.6 billion, led by its asset expansion, stable margins, well-managed cost growth, and asset quality.
Net interest income rose by 14.6% to P58 billion. Consolidated assets grew by 14.5% to P3.3 trillion at end-June.
On the automotive business, TMP saw a 6.1% decline in its first-half attributable net income to P7.53 billion from P8.02 billion last year due to unfavorable foreign exchange and higher sales promotions and logistics costs.
Consolidated revenue rose by 7% to P113.9 billion from P106.4 billion a year ago, driven by higher purchases of the Vios and Wigo models.
For the property business, Federal Land, Inc. recorded a 46.2% decline in its first-half attributable net income to P775 million from P1.44 billion a year ago due to lower lot sales and reduced contributions from associates and joint ventures.
First-half real estate sales dropped by 31.2% to P4.03 billion, while revenue fell by 30.1% to P6.86 billion.
Reservation sales decreased by 21% to P7.7 billion as a result of no new launches during the period and as other joint venture projects are nearly fully sold.
AXA Philippines Life and General Insurance Corp. saw a 15% increase in first-half consolidated net income to P1.5 billion due to higher investment income, mainly from higher time deposit placements and bond rates.
Consolidated life and general insurance gross premiums increased by 13% to P14.6 billion.
GT Capital said its 15.6% stake in Pangilinan-led Metro Pacific Investments Corp. (MPIC) also contributed to earnings. MPIC recorded a 27% increase in its first-half core net income to P12.5 billion from P9.9 billion last year.
Improved financial and operating results from MPIC’s holdings posted a 20% increase in contributions from operations to P14.8 billion, driven by strong growth in energy sales at Manila Electric Co., billed volumes at Maynilad Water Services, Inc., and traffic on the toll roads, complemented by higher tariffs.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls.
On Thursday, GT Capital shares dropped 3.84% or P24 to end at P601 per share. — Revin Mikhael D. Ochave
