GT Capital Holdings Inc., the listed investment company of tycoon George Ty, said it plans to spend up to P111.9 billion in 2018 to support the expansion of banking unit and other businesses.
GT Capital said in a filing with the stock exchange it would allocate between P63 billion and P65 billion to support the planned stock rights offering of Metropolitan Bank & Trust Co., the country’s second largest bank, and fund its systems upgrade, expansion of electronic banking channel, ATM installation, investment in new and renovation of existing branches.
The conglomerate also budgeted P20 billion for potential investments, P9 billion for real estate arm Federal Land Inc. and another P7.9 billion for mass housing unit Property Company of Friends Inc., or Pro-Friends.
The group’s automotive unit, Toyota Motor Philippines, will get P6.3 billion in capital expenditures to launch new vehicle models and support logistics expansion. Toyota Financial Services Philippines Corp. will receive P1.9 billion to improve its capital ratio and support loan expansion.
The remaining amount will be appropriated for the group’s other subsidiaries, including Sumisho Motor Finance Corp. and Philippine Axa Life Insurance Corp.
The group said it would secure funding for this year’s capital expenditures from internally generated funds and debt.
GT Capital said last week net income attributable to equity holders of the parent company declined 3 percent in 2017 to P14.18 billion from P14.63 billion in 2016.
It said the decline was primarily due to the recognition of non-recurring gains from the sale of investments in 2016.
The group said excluding non-recurring gains, core net income went up 29 percent to P15 billion from the 2016 level of P11.67 billion.
Consolidated revenues climbed 19 percent in 2017 to P239.8 billion from P202.1 billion in 2016 on strong car sales and improved financial performance of Metrobank, Axa Philippines and Metro Pacific Investments Corp.
“Our full-year 2017 results show encouraging growth momentum, with core net income up by 29 percent. 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.