GT Capital Holdings Inc. said net income attributed to its parent equity holder amounted to P197 million in the second quarter, down from P3.75 billion in the same period last year on lower revenues from its automotive and real estate businesses.
GT Capital said the second-quarter consolidated revenues dropped 76 percent to P13.6 billion from P55.82 billion a year ago.
Revenues from automotive operations went down by 78 percent to P10.5 billion from P48.2 billion in the same period last year on lower demand for vehicles amid the enhanced community quarantine during the quarter.
Real estate sales also declined by 81 percent to P579 million from P2.9 billion a year ago on temporary suspension of construction activities for ongoing real estate development projects.
Equity in net income of associates and joint ventures declined by 50 percent to P1.57 billion on lower net income contribution from banking unit Metropolitan Bank & Trust Co. to P3 billion which allocated substantial provisions for credit and impairment losses to secure the bank from further economic slowdown that may result from the continuing COVID-19 pandemic.
“We continue to closely monitor the development of the Covid-19 pandemic with concern. During this period of uncertainty, GT Capital continues to practice fiscal discipline, resulting in a strong and stable balance sheet, adequate liquidity, and access to credit facilities, in case of need. Our group’s solid core businesses make us well-positioned to ride out the impact of this pandemic,” GT Capital president Carmelo Maria Luza Bautista said.
GT Capital said net income also dropped 62 percent in the first half to P2.74 billion from P7.17 billion a year earlier as consolidated sales went down by 48 percent to P52.6 billion from P100.7 billion.
The share price of GT Capital climbed 5.7 percent to close at P424 Monday.