GT Capital Holdings, Inc.
GT Capital to subscribe in Metrobank’s SRO

GT CAPITAL Holdings, Inc. on Thursday told the stock exchange it plans to “fully subscribe” in the stock rights offering (SRO) of its banking arm Metropolitan Bank and Trust Co. (Metrobank).

At present, GT Capital owns 36.09% of Metrobank.

Metrobank on Wednesday said its board of directors approved to conduct an SRO to sell 819.83 million common shares, equivalent to the remaining unissued shares from the lender’s authorized capital stock.

Proceeds from the offer will be used to fund the Ty-led bank’s loans and fully acquire its credit card arm.

Metrobank said in October that it entered into an agreement with ANZ Funds Pty. Ltd. (ANZ) for the bank’s purchase of the latter’s 40% stake in credit card provider Metrobank Card Corp. (MCC).

MCC is a joint venture between Metrobank and ANZ formed in 2003, with the local lender holding the majority 60% stake.

“The capital raising exercise is expected to enable the bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the bank’s sales and distribution network that has rapidly expanded in the preceding years,” Metrobank said. 



GT Capital core profit jumped 29% in 2017

The Ty family’s GT Capital Holdings Inc. saw its earnings increase in 2017, bolstered by its banking, automotive and infrastructure businesses.

GT Capital disclosed to the Philippine Stock Exchange yesterday that core profit rose 29 percent to P15 billion last year from 2016 level. Total revenue was up 19 percent to almost P240 billion.

GT Capital attributed the profit increase to strong sales posted by Toyota Motor Philippines Corp. (TMP) and better results from associates Metropolitan Bank & Trust Co. (Metrobank), AXA Philippines and Metro Pacific Investments Corp.

“GT Capital’s key sectors continue to be in the sweet spot, in line with our country’s stage of economic development, reaping demographic dividends,” GT Capital president Carmelo Maria Luza Bautista said in a statement.

TMP recorded a 19-percent growth in consolidated revenue to P185.3 billion in 2017. Retail sales volume during the period hit 183,908 units, up 16 percent.

“Toyota maintained its industry-leading position with an overall market share of 39 percent, reinforced by continued strong sales of the Fortuner, Vios and Innova models,” GT Capital said.

TMP’s consolidated net income grew by 11 percent to P13.4 billion in 2017.

Metrobank reported a consolidated net income of P18.2 billion in 2017, up 10 percent on a core basis.

The bank ended the year with total deposits of P1.5 trillion, with low-cost deposits rising 12 percent to P950 billion.

Metro Pacific reported a 17- percent rise in consolidated core net income to P14.1 billion last year. Earnings were boosted by an expanded power portfolio following further investments in Beacon Electric Asset Holdings Inc., traffic growth on all roads held by Metro Pacific Tollways Corp. and growth in the hospital group.

GT Capital also cited higher revenues posted by its property arm, composed of Federal Land Inc. and Property Company of Friends Inc.



GT Capital spending over P100 billion in 2018

MANILA, Philippines – GT Capital Holdings Incorporated is spending as much as P111.9 billion this year, mainly to fund its banking unit's improvement of capital ratio and expansion of electronic banking channels.

The George Ty-led holding firm told the local bourse last week that it has earmarked between P109.9 billion and P111.9 billion for capital expenditures in 2018, with Metropolitan Bank & Trust Company (Metrobank) taking a big chunk of the pie.

Metrobank, the Philippines' 2nd largest bank, allocated a capital spending budget of P63 billion to P65 billion this year to improve capital ratio, support loan expansion, expand electronic banking channels, install more automated teller machines, renovate some of its branches, and build more new ones, according to the listed firm's information sheet. (READ: GT Capital ventures into microfinance)

Of the over P100-billion capital spending budget, GT Capital allocated P9 billion for Federal Land Incorporated's capital calls in joint ventures and office buildings, as well as P7.9 billion for the expansion plans of Property Company of Friends Incorporated (Pro-Friends).

Meanwhile, its automotive unit Toyota Motor Philippines Corporation will get P6.3 billion for the launch of its new vehicle models and logistics expansion.

Toyota Manila Bay Corporation will have P1 billion this year for dealership expansion and renovation, while Toyota Financial Services Philippines Corporation will get P1.9 billion for its capital ratio improvement and loan expansion.

GT Capital's information sheet also showed that less than a billion pesos will go to Philippine Axa Life Insurance Corporation and Sumisho Motor Finance Corporation for their respective expansion plans.

GT Capital also set aside P20 billion for its potential investments. The group plans to fund its huge capital spending budget through internal funding and debt.

The listed firm saw a 29% growth in core net income of P15 billion in 2017, from P11.7 billion in 2016.

"GT Capital's key sectors continue to be in the sweet spot, in line with our country's stage of economic development, reaping demographic dividends," its president Carmelo Maria Luza Bautista said in a separate statement.

GT Capital is a listed major Philippine conglomerate, with interests in banking; automotive assembly, importation, dealership, and financing; property development; life and non-life insurance; infrastructure; and motorcycle financing.



GT Capital Q1 profit jumps 21%

Tycoon George Ty-led GT Capital Holdings posted a 21-percent year-on-year growth in first quarter net profit to P3.74 billion on higher share of earnings from its banking, insurance and infrastructure businesses.

Excluding one-off items, GT Capital’s three-month core profit rose by 18 percent year-on-year to P3.75 billion, the company disclosed to the Philippine Stock Exchange yesterday.

GT Capital booked consolidated revenue of P45.5 billion in the first three months, owing to higher equity in net income of associates Metropolitan Bank and Trust Co. (Metrobank), AXA Philippines and Metro Pacific Investments Corp.

“The interim soft numbers for the auto sector during the first quarter resulted from the front-loading of orders late last year in anticipation of the new excise tax. We expect sales to normalize by the second half of the year. Nevertheless, significant contributions from our associate companies Metrobank, Metro Pacific, and AXA Philippines resulted in strong first quarter growth,” GT Capital president Carmelo Maria Luza Bautista said.

Toyota Motor Philippines (TMP)’s first quarter net profit slipped by 4.6 percent year-on-year to P2.36 billion. Three-month sales declined by 9.3 percent to P33.7 billion as demand slowed with the imposition of new auto excise taxes law alongside supply limitations.

TMP sold 34,440 vehicles in the first quarter, maintaining a market-leading share of 36 percent.

Metrobank reported unaudited consolidated net income of P5.9 billion for the first quarter, up 5.3 percent from the level in the same period last year, on the back of sustained growth in the core business.

Earnings share from Metrobank also increased as GT Capital raised its ownership in the bank to 36.09 percent from 26.47 percent in the first quarter of last year.

The insurance business under AXA saw a 46.8-percent growth in first quarter net income to P627.9 million.

For its part, infrastructure affiliate Metro Pacific reported a 16-percent rise in consolidated core net income to P3.6 billion for the first quarter on the back of strong volume growth across the portfolio and the increased investment in the power industry last year.



Philippines' GT Capital to invest up to $202 million in Toyota Motor

MANILA (Reuters) - Philippine conglomerate GT Capital Holdings Inc (GTCAP.PS) said on Thursday it would buy shares of Japan’s Toyota Motor Corp (7203.T) worth up to 22.2 billion yen ($201.6 million), marking its first offshore investment.

Toyota and GT Capital are co-owners of Toyota Philippines, the country’s top automotive manufacturer and retailer, with 49 percent and 51 percent, respectively.

The share purchase will be debt-funded and executed on the Tokyo Stock Exchange, based on the current prevailing rates on the dates of execution, GT Capital said in a statement.

Toyota is attractive given the dividend payout and potential increase in its stock price, GT Capital President Carmelo Maria Luza Bautista told Reuters. “At current price levels, Toyota is a good investment.”

GT Capital will acquire less than 0.1 percent of Toyota, which is valued at $208.7 billion.

Philippine companies having dominant market positions are increasingly exploring overseas opportunities for fresh sources of revenue.

Toyota Philippines is among the top income contributors of GT Capital, which is valued at $3.2 billion.

GT Capital's shares rose 1.98 percent, bucking the broader stock market's .PSI 1.29 percent decline as of 0343 GMT.



...modest projections

GT Capital eyes mid-single digit growth

GT Capital Holdings, Inc. looks to grow its earnings in the mid-single digits for full year 2018, amid recording flat profit for the first semester after the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law dented auto sales.

In a regulatory filing, the holding firm of tycoon George S.K. Ty reported that net income attributable to equity holders of the parent dropped by 18% in the second quarter to P3.4 billion, versus the P4.1 billion it booked in the same period a year ago. Revenues for the quarter also slumped six percent to P55.7 billion.

This brought GT Capital’s attributable profit one percent lower to P7.1 billion in the first half of 2018, after revenues slipped by six percent to P101.2 billion, reflecting the slowdown in the number of units sold under Toyota Motor Philippines (TMP).

“This is attributed to the front-loading of orders late last year in anticipation of the TRAIN Law and the run-out of the previous generation Vios during the second quarter… On the other hand, our affiliates Metrobank, AXA Philippines, Metro Pacific, and TFS delivered strong results, mitigating the soft numbers from the auto sector,” GT Capital President Carmelo Maria Luza Bautista said in a statement.

The implementation of TRAIN last January directed higher excise taxes on vehicles, with those costing P600,000 and below slapped with a 4% tax, instead of the previous 2%. Taxes for cars priced between P600,000 to P1 million are now at 10%, from the previous scheme of P12,000 plus 20% of the amount in excess of P600,000.

With this, sales of Toyota vehicles dropped by 14% to 73,136 in the first half. The company said this is close to the industry’s 12% year-on-year decline to 191,495 units sold for the period, citing data from the Chamber of Automotive Manufacturers of the Philippines, Inc.

TMP’s consolidated net income stood at P4.6 billion for the first half, after revenues of P76.4 billion. Despite slower sales, the company maintained its leading market position with a share of 38%.

“We are expecting that market demand may normalize by the fourth quarter and resume its growth momentum by 2019 due to TMP’s new model launches and sufficient inventory,” Mr. Bautista said.

Meanwhile, Metropolitan Bank & Trust Company recorded a 16% increase in net income to P11 billion for the first half. The company benefited from the growth of its core business, alongside an 18% jump in its loan portfolio to P1.3 trillion.

GT Capital’s property units Federal Land, Inc. and Property Company of Friends, Inc. booked P9.7 billion in combined revenues for the first half, with a consolidated net income of P1.1 billion.

Metro Pacific Investments Corp.’s consolidated core profit went up by 10% to P8.6 billion from January to June. The infrastructure conglomerate’s performance was driven by higher investments in the power sector, continued traffic growth in its operating toll rods, and volume growth from Maynilad Water Services, Inc.

Its insurance business, Philippine AXA Life Insurance Corp., delivered a 35% profit increase to P1.3 billion.

Asked for the company’s outlook for the rest of the year, Mr. Bautista said he is looking forward to a recovery.

“Still positive growth (for 2018), but siguro single-digit. Mid single-digit. We’re expecting the bank to continue its strong performance, the insurance to (have) strong performance. We hope for some turnaround in the property side. For Toyota, depending on how fast the volume picks up,” Mr. Bautista told reporters on the sidelines of a media and analysts’ briefing in Bonifacio Global City on Wednesday.

The GT Capital executive noted that higher spending related to the upcoming elections may start as early as the fourth quarter of this year, which could boost sales for TMP.

“Election spending mag-uumpisa na yan by November and December. There’s always been a high statistical correlation between unit sales of cars and election years. There’s just more money going around, for logistics, relations… and usually the atmosphere is positive,” Mr. Bautista said.



...ok lang Smile

Federal Land to launch 5 projects in second half

FEDERAL LAND, INC. launched the Florida Sun Estates-Orlando in General Trias, Cavite earlier this year.
THE property unit of GT Capital Holdings, Inc. will be launching five more residential projects in the second half of 2018, after posting lower reservation sales in the first half due to fewer units left in its inventory.

Federal Land, Inc. had targeted to unveil nine to 11 projects this year, three of which have already been launched from the January to June period. This includes the Florida Sun Estates-Orlando in General Trias, Cavite, Mimosa Tower of Peninsula Garden Midtown Homes in Paco, Manila, and Baler Tower of Palm Beach West in Metro Park, Bay Area.

The property developer then launched the first tower of Quantum Residences along Taft Avenue in Pasay City earlier this month.

“We have five more projects in the second half. There’s Grand Hyatt 2 because Grand Hyatt 1 was fully sold out, two or three towers in the Bay Area. Aside from Grand Hyatt, another tower in Bonifacio, and another tower in Taft,” GT Capital President Carmelo Maria Luza Bautista told reporters after a media and analysts’ briefing in Taguig City on Aug. 15.

Federal Land has already sold out the 239 units in the first tower of the Grand Hyatt Manila Residences in Bonifacio Global City (BGC) in Taguig. The company will also launch the second tower of the Quantum Residences in Pasay, which will cater to students of schools such as De La Salle University, St. Scholastica’s College, and Arellano University located within the area.

The launch of more projects will support the company’s growth this year. In a presentation, Mr. Bautista noted that Federal Land’s inventory slipped by 17% to 1,364 units in the first half, following delays in securing permits and licenses for new projects. Reservation sales accordingly fell by six percent to P6.4 billion.

Federal Land’s net income also dropped by 35% to P503.6 million in the first semester, versus the P777.8 billion it generated in the same period a year ago, as revenues stood flat at P5.3 billion.

The company currently holds a land bank of 82.70 hectares across the country, located across Metro Manila and provinces such as Iloilo, Laguna, and Cavite. Its residential units for sale range from 18 to 400 square meters (sq.m.), priced from P20 to P101 million.

Aside from residential projects, the company said it will also redesign the podium for The Big Apple Mall at Grand Central Park in BGC, to accommodate the business district’s high-density residential communities. The redesign will bring 20,000 sq.m. of additional gross floor area to the company.

Federal Land is one of the property companies of tycoon George S.K. Ty, with the other being Property Company of Friends, Inc. (Pro-friends), which caters to the low-cost property sector. Pro-friends has so far developed 2,886 housing units, with a land bank of more than 1,700 hectares mostly in Cavite.

The two firms delivered consolidated revenues of P9.7 billion in the first half of 2018, 8.9% higher year on year, while net income attributable to the parent went down by 24.5% to P1.1 billion.



Higher property sales lift GT Capital Q3 profit

GT CAPITAL Holdings, Inc. logged a 6% growth in attributable profit for the third quarter of 2018, as the surge in real estate sales and higher income from associates offset the auto unit’s drop.

In a regulatory filing, the holding firm of tycoon George S.K. Ty said net income attributable to the parent climbed to P3.8 billion, higher than the P3.58 billion posted in the same period a year ago.

Revenues dipped by 2% to P60.18 billion as automotive operations — which accounted for about 80% of revenues — slumped by 12% to P47.94 billion.

Toyota Motor Philippines (TMP), GT Capital’s joint venture with Toyota Motor Corp. of Japan, reported a 13% decline in wholesale volume for the quarter to 42,303 units, from 48,645 in the same period a year ago. Demand for vehicles continued to be dampened by higher excise taxes, soaring inflation, and rising fuel prices.

With this, GT Capital’s attributable profit for the first nine months of the year was flattish at P10.94 billion, a percent higher than the P10.82 billion booked in the same period a year ago.

The company’s revenues further went down by 5% to P161.34 billion, as wholesale volume of TMP slipped by 12% to 117,080 units. TMP’s revenues accordingly fell by 11% to P132.92 billion.

“Our year-to-date results show the counterbalance between the soft auto sector volume sales mitigated by strong growth in financial services, property, and insurance segments. The consensus is that the decline in auto sales may have bottomed out as monthly volumes have stabilized,” GT Capital President Carmelo Maria Luza Bautista said in a statement.

Real estate sales from Federal Land, Inc. and Property Company of Friends, Inc. (PCFI) compensated for the auto unit’s weakness, rising by 45% to P15.7 billion in the nine-month period. Federal Land was boosted by sales from its middle-market condominium projects and lot sales, while PCFI benefited from affordable and economic housing projects.

GT Capital also saw 39% higher equity in net income of associates to P9.13 billion for the period due to profit increases among the companies.

For Metropolitan Bank and Trust Company, net income for the nine months ending September expanded by 27% to P16.18 billion due to higher deposits and loans. GT Capital holds a 36.36% stake in the lender.

Infrastructure conglomerate Metro Pacific Investments Corp. also posted an 8% increase in consolidated core profit to P12.2 billion. This was driven by increased investments in the power sector, continued traffic growth in its operating toll roads, and tariff adjustments coupled with volume increase from its water unit.

Earnings of AXA Life Insurance Corp. meanwhile jumped by 21% to P2.14 billion, following higher life and non-life premium income for the period.

GT Capital Chairman Arthur V. Ty said they remain optimistic for the company’s performance next year, noting that macroeconomic indicators have shown positive trends as of the third quarter.

“Oil prices have declined, foreign exchange rates have shown some strength, and food prices have stabilized. We believe that these factors, combined with the increased spending levels in the last quarter, provide a good backdrop for improved conditions in 2019,” Mr. Ty said in a statement. 



...ano ba yan?!

GT Capital expects flat earnings growth this year

GT Capital Holdings, Inc. expects to book about P3-4 billion in net income during the fourth quarter, for an overall flattish growth in 2018.

“We expect P3 to 4 billion in the last quarter. If ever, hindi lalayo sa P14 billion (net income). Flat ‘yun,” GT Capital President Carmelo Maria Luza Bautista told reporters after the company’s third quarter media briefing in Makati last week.

GT Capital’s consolidated net income attributable to parent stood at P14.18 billion in 2017, 3% lower than the P14.63 billion in 2016.

Mr. Bautista noted that the flat growth is similar to most conglomerates’ performance so far this year, weighed down by the negative market sentiment.

“In fact most conglomerates are either flat or 1%, karamihan nga negative. So it’s really the overall market sentiment,” he explained, citing rising oil and food prices as well as higher interest rates as the factors affecting consumer confidence this year.

The holding firm of tycoon George S.K. Ty however sees faster growth in 2019, as the factors that dampened consumer confidence this year are showing signs of recovery.

“Now we’re seeing the reverse. Oil prices have been significantly adjusted, so that translates to cheaper fuel, cheaper electricity, everything is fuel based eh. And then food prices are stable,” Mr. Bautista said.

In particular, Mr. Bautista said they expect GT Capital’s banking unit, Metropolitan Bank and Trust Company, to boost operations next year.

For the first nine months of 2018, GT Capital grew its attributable profit by 6% to P3.8 billion, versus the P3.58 billion it posted in the same period a year ago. Revenues slipped by 2% to P60.18 billion, weakened by auto sales which fell 12% to P47.94 billion.

Meanwhile, Mr. Bautista said there will be a slowdown in project launches for Federal Land, Inc. in 2019, following its more aggressive approach this year.

“We just did eight projects for Federal Land… I don’t think we will do another eight projects next year,” he said.

Federal Land’s project launches this year include the Florida Sun Estates-Orlando in General Trias, Cavite; the Mimosa Tower of Peninsula Garden Midtown Homes in Paco, Manila; Baler Tower of Palm Beach West in the Bay Area; Quantum Residences in Pasay; Four Season Riviera Peony Tower in Binondo, Manila; and Valencia Hills Tower E in Quezon City.

The property developer also unveiled the South Tower of Grand Hyatt Manila Residences and Sunshine Fort, both in Bonifacio Global City.

With this developments, Federal Land managed to maintain its reservation sales at P1 billion per month, with year-to-date sales at P9 billion.

The project launches in 2019 may include Federal Land’s partnership with the SM Group for a residential condominium in Makati through ST 6747 Resources Corp.

“Most likely, I think they’re still finalizing the architectural plans. But that will be soon,” Mr. Bautista said. 


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