GT Capital posts P11-B net income, up 68%
The Ty-led conglomerate GT Capital Holdings, Inc. reported its consolidated net income rose 68 percent to P11 billion in 2021 from P6.5 billion in the previous year on robust contributions from its banking and automotive units.
In a disclosure to the Philippine Stock Exchange, GT Capital reported that its core net income increased 48 percent to P11 billion last year from P7.4 billion in 2020 driven by Metropolitan Bank & Trust Company (Metrobank), whose net income improved by 60 percent to P22.2 billion, as well as Toyota Motor Philippines (TMP), which realized a net income of P6.2 billion, up 82 percent.
Stronger real estate sales from Federal Land, Inc. (Federal Land), and a higher net income contribution from associate Metro Pacific Investments Corporation (Metro Pacific) also contributed to GT Capital’s positive performance in 2021.
“2021 was a strong bounce-back year for our group. Given the increased mobility and the gradual reopening of the Philippine economy in the fourth quarter, GT Capital delivered strong overall results in 2021 as we approach pre-Covid levels. Noteworthy is Toyota Motor Philippines, which dominated the auto market for the 20th consecutive year, realizing an all-time high market share of 46.3 percent, while reaching the milestone of selling over two million vehicles in the Philippines. Furthermore, I am pleased to report that GT Capital has been highly ranked in its environmental, social, and governance (ESG) efforts by rating agencies, such as MSCI and S&P, among others. We shall therefore continue to adapt best ESG practices moving forward. Notwithstanding the recent geopolitical conflict between Russia and Ukraine and the rise in oil and commodity prices, we look forward to 2022 with reasonable optimism as we take on new growth opportunities,” said GT Capital President Carmelo Maria Luza Bautista.
In particular, Metrobank’s net income rose by 60 percent to P22.2 billion in 2021 driven by strong fourth quarter earnings, more than double to P6 billion, boosted by a decline in provisions as its loan portfolio remained healthy.
Net interest margin stabilized at 3.4 percent since the second quarter of 2021 as the sequential quarterly recovery in corporate and credit card loans has been sustained, while the 12 percent increase in low-cost current account and savings account (CASA) deposits continued to help trim overall funding cost.
Despite the challenging conditions last year, Metrobank’s nonperforming loan (NPL) ratio eased to 2.2% in 2021 from 2.4% in 2020, while NPL cover remained ample at 174.7 percent.
“Metrobank’s positive performance in 2021 validates its strategies of fortifying the balance sheet and proactive provisioning during the pandemic. The Bank has emerged stronger and well-prepared to meet the needs of its stakeholders as the economy moves towards full recovery,” Metrobank President Fabian S. Dee said.
Toyota Motor Philippines (TMP) booked consolidated revenues of P131.3 billion in 2021, from P99.8 billion in the previous year, representing a 32 percent growth. TMP’s consolidated net income reached P6.2 billion during the period, from P3.4 billion in 2020, registering a hefty 82 percent growth.
“As the Philippine economy rebounded in 2021, so did the automotive sector. TMP delivered strong results last year, significantly outpacing the growth momentum of the industry. We are very encouraged about our continuing strong market penetration despite four months of mobility restrictions in 2021 and the accompanying global supply chain disruptions. TMP’s 46.3% market share is the highest in the ASEAN and third highest globally. As the economy and auto market resurges, TMP remains reasonably optimistic. In fact, in March this year, TMP achieved a remarkable milestone of selling over two million units in the country since it started operations over three decades ago,” GTCAM Chairman Vince S. Socco said.
GT Capital’s wholly-owned property subsidiary Federal Land also recorded a 57 percent increase in consolidated net income from P6 billion in 2020 to P1.0 billion in 2021, due to continued construction activity, increased project bookings, and stronger sales activities. The company posted total revenues of P10.4 billion for the year, representing a 12 percent increase from P9.3 billion in 2020.
Metro Pacific Investments Corporation (Metro Pacific) reported a consolidated core net income of P12.3 billion for 2021, up 20 percent from P10.2 billion a year earlier. This substantial improvement from the 13 percent growth in the first half of the year was largely driven by improved traffic on its toll roads and higher volume of electricity sold by Manila Electric Company (Meralco).
Core net income for the fourth quarter rose 14 percent to P2.8 billion compared with the same period in 2020. This acceleration of growth reflected an improvement in performance notwithstanding the continued imposition of varying levels of quarantine across the country to contain the Covid-19 pandemic and was partially augmented by the 6 Meantime, AXA Philippines’ consolidated life and general insurance gross premiums increased by 19 percent to P43.2 billion in 2021, from P36.3 billion in the same period last year, driven by the life segment, which rose 25 percent year-on-year. The insurer’s consolidated net income reached P2.3 billion for 2021, from P2.9 billion in the previous year.