Metro Manila (CNN Philippines, May 18) — GT Capital Holdings saw its profits rise 60% in the first quarter of the year “mainly driven” by higher revenues from its banking and automotive businesses.
In a disclosure posted to the local stock exchange on Tuesday, the Ty family-run company reported consolidated net profit of £4.1bn for the period, up 60% from £2.5bn of the same quarter in 2020.
“The solid performance of Metrobank and the strong rebound in the automotive sector led to significant earnings growth for GT Capital in the first quarter,” GT Capital President and CEO Carmelo Bautista said in the statement.
Metrobank, one of the largest banks in the Philippines, saw profits rise 27% to £7.8bn from January to March. The listed conglomerate noted that this was mainly due to the 28% annual increase in non-interest income, which currently stands at £7.9bn.
Toyota Motor Philippines also recorded a net profit of £2 billion, a 39% jump from the £1.4 billion recorded during the same period in 2020. The company sold 33,095 vehicles in retail in the quarter, up 29% year-on-year. Its auto sales also rose 6% to 74,585 units.
“TMP remained the number one automotive brand in the country with a record overall market share of 44.4% in the first quarter of 2021, continuing its strong market leadership position,” said GT Capital.
However, infrastructure arm Metro Pacific Investments saw revenues fall 26% to £2.5bn in the first three months of the year.
“As with previous quarters, mobility restrictions resulted in reduced toll road traffic, light rail services, and commercial and industrial demand for water and electricity,” GT Capital noted.
Profits at property subsidiary Federal Land, meanwhile, fell to £327m from the £375m recorded in 2020 due to “restrictions on building and sales activity during the quarantine period”.
Net profit for the AXA Philippines insurance arm also fell to £324 million from £367 million in the first quarter of 2020.
“Despite the recent increase in Covid-19 cases and the reimposition of enhanced community quarantine in March, we remain optimistic for the rest of the year,” Bautista said.
He added that the group hopes to accelerate vaccine deliveries in the second half of 2021, accelerate the inoculation of the population and reopen more economic sectors, as this will allow GT Capital “to continue its growth momentum from the first trimester”.