MANILA -- Top management of GT Capital Holdings Inc. remains confident that it is on track to achieve single-digit profit growth this year, driven by strong growth of financial services, property and insurance segments.
This, even after the conglomerate posted flat net income at PHP11 billion from January to September this year, as the strong performance of its banking and financials segment counterbalanced the decline in automotive earnings.
Its consolidated revenues also slightly declined to PHP161.3 billion during the same period from PHP169.5 billion last year.
“The combination is good. While the automotive numbers were soft, the strong numbers from banking and financials offset which is the advantage of a more balanced portfolio. We are not over reliant on one sector,” GT Capital President Carmelo Maria Luza Bautista told reporters on Thursday after the release of its nine-month income data.
Bautista attributed the decline in retail vehicle sales of Toyota Motor Philippines (TMP) during the first nine months of the year to “frontloading of orders” during the latter part of 2017 in anticipation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Implemented last January 1 this year, TRAIN was the first package of the Comprehensive Tax Reform Program (CTRP) which reduced personal income taxes and adjusted excise taxes on fuel and automobiles.
“The consensus is that the decline in auto sales may have bottomed out as monthly volumes have stabilized. We are more optimistic for the coming year, anticipating a rebound in consumer confidence arising from a less volatile macroeconomic environment,” he added.
GT Capital reported that consolidated net income from TMP declined to PHP6.6 billion in January to September this year from PHP9.9 billion during the same period last year.
Metropolitan Bank & Trust Company (Metrobank) grew its net income by 27 percent to PHP16.8 billion from PHP13.2 billion.
Metro Pacific Investments Corp. (MPIC) reported an 8-percent rise in profit from PHP11.3 billion to PHP12.2 billion, lifted mainly by an expanded power portfolio.
GT Capital’s property development subsidiaries, Federal Land, Inc. and Property Company of Friends, Inc., reported an aggregate net income of PHP2.3 billion in first nine months of 2018, up 20 percent from PHP1.9 billion last year.
AXA Philippines’ net income from January to September 2018 rose by 21 percent to PHP2.14 billion from PHP1.77 billion. (PNA)
