GT Capital Holdings Inc. on Friday said first-half (H1) net income fell 11 percent to P16.41 billion from P18.42 billion a year earlier as weaker economic activity and softer automotive demand weighed on earnings.
President Carmelo Maria Luza Bautista said that while the January to June performance reflected the effects of a slower macroeconomic environment, the group’s investment portfolio and balance sheet remained stable.
“’[W]e will approach the second half of the year with a continued focus on disciplined execution of our strategic priorities,” Bautista said.
The company noted that economic growth had slowed to 2.3 percent in the second quarter amid high inflation, weaker consumer confidence and slower government spending.
Among its subsidiaries, banking arm Metropolitan Bank & Trust Co. (Metrobank) remained resilient, reporting a P24.9-billion net income for the first half.
Net interest income rose 12.8 percent year on year to P67.7 billion, while gross loans expanded 12.4 percent. Corporate and commercial loans grew 12.8 percent while consumer loans increased 11.1 percent.
Metrobank reported a nonperforming loan (NPL) ratio of 1.8 percent as of end-June, below the industry average of 3.4 percent, although it raised provisions by 26.8 percent to maintain an NPL coverage ratio of 133.3 percent.
Automotive arm Toyota Motor Philippines Corp. faced weaker demand during the period, with revenues plunging 15 percent to P115.4 billion. The resulting net income of P8.4 billion was down sharply from P12.5 billion in the comparable period last year.
GT Capital said the automotive business suffered from slower demand, exacerbated by a sharp increase in global oil prices amid the continuing conflict in the Middle East.
Nevertheless, Toyota posted a 3.2-percent month-on-month sales growth in June, which the group viewed as an early indication of a possible recovery in the market.
Toyota maintained a 49.3-percent share of the Philippine automotive market based on industry data. Electric vehicles accounted for 11.1 percent of sales in the first half, up 23.3 percent year on year.
Metro Pacific Investments Corp., meanwhile, posted a 6-percent increase in core net income to P16 billion, while the group’s property and insurance businesses also recorded operating gains.
Property development arm Federal Land Inc. completed 866 units and turned over 723 units in the first half, while Federal Land NRE Global Inc. began turnover of lots at Yume at Riverpark.
AXA Philippines Life and General Insurance Corp. recorded a 31-percent increase in gross premiums to P21.8 billion. Its life insurance business saw premiums grow 32 percent to P19.6 billion while its nonlife business posted a 16-percent increase in gross written premiums to P2.4 billion.
GT Capital said the Japanese Credit Rating Agency recently assigned the group an “A-” foreign currency long-term issuer rating with a stable outlook, citing its diversified portfolio and strong fundamentals.
The conglomerate has interests in banking, automotive assembly and distribution, property development, insurance and infrastructure through Metrobank, Toyota Motor Philippines, Federal Land, AXA Philippines and MPIC.
GT Capital saw its shares climb P8.00, or 1.58 percent, to close at P514.00 each on Friday amid a 0.14-percent upturn for the benchmark Philippine Stock Exchange index.
