Solidarity in the time of COVID-19 -- MS Supplement

GT Capital’s income declines 26% to P2.5b

Conglomerate GT Capital Holdings Inc. said net income in the first quarter of the year declined 26 percent to P2.5 billion from P3.4 billion year-on-year on lower contributions from operating units affected by the implementation of the enhanced community quarantine order.

GT Capital said in a disclosure to the stock exchange Monday net income dropped 15 percent to P2.8 billion from P3.3 billion a year ago.

First-quarter consolidated revenues also declined 13 percent to P39.0 billion from P44.9 billion in 2019.

The bulk of the conglomerate’s first quarter net income came from banking unit Metropolitan Bank & Trust Co., whose net income amounted to P6.1 billion, and automotive subsidiary Toyota Motor Philippines, which booked a profit of P1.5 billion.

Real estate sales from Federal Land Inc. as well as higher contributions from associate Sumisho Motor Finance Corp. (Sumisho) also contributed to the group’s performance in the first quarter of 2020.

“Amidst the global disturbance caused by the Covid-19 pandemic, the GT Capital Group of Companies remains steadfast in our commitment of first, to the safety and well-being of all our employees and staff, and second, to the undisrupted delivery of our products and services to all our customers during these challenging times,” GT Capital president Carmelo Maria Luza Bautista said.

“Given the diversity of our investment portfolio, the strong position we hold in the sectors we are in, our solid financial position, and our strategic partnerships, we believe that our group will be more resilient in coping with today‟s difficult environment. We are confident that we can bounce back from the current worldwide disruptions and adapt our strategies to the ‘new normal’ conditions of the marketplace,” he added.

Metrobank posted a net income of P6.1 billion in the three-month period, driven by a six-percent growth in loans, eight-percent increase in deposits and non-interest income reaching P6.2 billion.

Toyota posted consolidated revenues of P28.8 billion in the first quarter, down 14.8 percent year-on-year, as total vehicle sales reached 25,686 units from 33,546 units in the same period last year.

By the last two weeks of March, however, most of TMP’s dealers nationwide were closed in compliance with the ECQ due to the COVID-19 pandemic.

“As we saw in TMP’s first quarter results, 2020 was off to a respectable start. The prospects for the rest of 2020, however, face very significant headwinds brought about by the Taal eruption and, of course, the Covid-19 pandemic. We are confident, though, that when the Enhanced Community Quarantine is lifted, transportation and mobility will be among the essential drivers of economic recovery. Given the resilience of the Philippine economy and the robust capabilities of TMP we believe that we can emerge from this crisis on solid footing,” GT Capital Auto Dealership Holdings chairman Vince Socco said.

Topics: GT Capital Holdings Inc. , net income
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