GT Capital profit down 68% to P6.5 billion

GT Capital Holdings Inc., the conglomerate of the Ty Group, saw its net income fall by 68 percent last year to P6.5 billion due to the negative impact of the COVID-19 pandemic.

Core earnings were slashed by 53 percent to P7.4 billion.

GT Capital’s businesses include banking through Metropolitan Bank & Trust Co. (Metrobank), automotive through Toyota Motor Philippines (TMP), property through Federal Land Inc, insurance through AXA Philippines, and tollways and infrastructure through a partnership with Metro Pacific Investments Corp.

In terms of revenues, the conglomerate raked in P134.4 billion, down 40 percent from the previous year.

“Our year-end 2020 results show the full impact of the pandemic and the consequent lockdown that hampered the group to effectively only seven months of operations. However, the strong performance posted during the last quarter under general community quarantine demonstrates the group’s resiliency to rebound on the path to normalcy,” said GT Capital president Carmelo Maria Luza Bautista.

The company is optimistic that despite the recent surge in COVID-19 cases, while alarming, will be mitigated once the pre-ordered vaccines are delivered by June and September.

“We have taken the necessary steps to procure the vaccines to protect all our employees and contractual staff. We anticipate that 2021 will be less disruptive than the previous year,” Bautista said.

In line with its strategy to better prepare for future risks from the pandemic, Metrobank booked P40.8 billion in provisions for bad loans, resulting in a net income of P13.8 billion.

TMP, meanwhile, posted a net income of P3.4 billion last year compared to P9.3 billion in 2019. Consolidated revenues declined to P99.8 billion from P168.6 billion.

Sales remain strong with Toyota selling 100,019 units, exceeding initial estimates of 90,000 units for 2020.

Actual annual sales declined by 38 percent versus 162,011 units in 2019 but still better than the automotive market’s 41 percent drop.

GT Capital’s wholly-owned property subsidiary Federal Land booked a net income of P624 million last year, down from P1.6 billion in 2019 as revenues fell to P9.3 billion.

Reservation sales also declined to P14.2 billion from P24.2 billion in 2019.

Insurance arm AXA Philippines, on the other hand, reported a 22 percent growth in net income to P2.9 billion driven by higher single premium sales, which surged by 55 percent year on year.

Article and Photo originally posted by Philippine Star last March 30, 2021 12:00am and written by Iris Gonzales.