GT Capital First Half 2022 Core Net Income Rises 39%

(16 August 2022. Makati City, Philippines.) GT Capital Holdings, Inc. (GT Capital/ GTCAP) disclosed today a 39% growth in its core net income to Php8.1 billion for the first half of 2022 from Php5.8 billion in the previous year. The conglomerate’s consolidated net income increased 24% to Php8.3 billion in the first six months of 2022 from Php6.7 billion in 2021. This was driven by Metropolitan Bank & Trust Company (Metrobank), whose net income rose by 33%. Higher net income contributions from Toyota Motor Philippines (TMP), Federal Land, Inc. (Federal Land), and GT Capital associate Metro Pacific Investments Corporation (Metro Pacific) also supported the conglomerate’s positive performance during the period.

“GT Capital’s 2022 first half results mirror the impressive GDP growth of the Philippine economy. Given the gradual return to normalcy, greater mobility, resurgent consumption, and the new administration’s pronouncements in support of sustained economic growth policies, we are confident that our Group will fare very well for the rest of the year. Furthermore, we have recently entered into key strategic partnerships in our property business that will ensure a healthy pipeline of projects for many years to come,” GT Capital President Carmelo Maria Luza Bautista said.

Metropolitan Bank & Trust Company (Metrobank) recorded a 33% increase in net income to Php15.6 billion in the first half of 2022, as earnings surged by 95% to Php7.6 billion in the second quarter. Gross loans rose by 9% year-on-year to Php1.3 trillion, led by a 12% growth in corporate and commercial lending and a 16% increase in gross credit card receivables. Asset quality further improved, enabling the Bank to trim provisions by 46% in the first half. Metrobank’s non-performing loans (NPL) cover stood strong at 196%. Meanwhile, net interest income increased by 6% to Php39.8 billion in the first half as net interest margin (NIM) recovered to 3.4%. Non-interest income went up by 8%, driven by an 18% jump in fees and other noninterest earnings. Operating expenses remained under control and stayed flat at Php29.4 billion. This resulted in a 53.8% cost-to-income ratio (CIR), an improvement from the 57.2% posted last year. Overall, Metrobank’s performance was better across the board — faster loan expansion, improving interest margin, robust fee income growth, stable operating costs, and lower provisions amid healthier asset quality. “The continued improvement in the Bank’s performance cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from prestigious publications, naming us the country’s best bank,” said Metrobank President Fabian S. Dee. “Our focus on serving our clients’ needs, while actively managing risks and promoting efficiencies, has driven our solid operating results, and will continue to do so in the medium-term as the economy expands,” Mr. Dee added.

Toyota Motor Philippines (TMP) booked consolidated revenues of Php85.0 billion in the first half of 2022, from Php63.7 billion in the previous year, representing a 33% growth. TMP’s consolidated net income reached Php3.4 billion during the period, from Php3.5 billion in the first six months of 2021. Toyota though continued to outpace the market with retail vehicle sales of 80,090 units in January to June 2022 from 63,758 units in the same period last year, a significant 26% increase, year-onyear. The Philippine automotive market, on the other hand, grew by 11% to 155,930 units from 139,949 units in the previous year. TMP enhanced its model lineup by launching three new model variants from April to July this year, namely the Veloz in April, the Rush GR-Sport in June, and the all-new Lite Ace in July. TMP has remained the country’s number one automotive brand with a record 51.4% overall market share in the first six months of 2022, continuing its dominant position in the market.

“As the Philippine economy continues to improve in 2022, the automotive sector has likewise sustained its growth momentum. Despite the higher inflation and foreign exchange volatility, TMP delivered strong results in the first half and has continued to outpace the industry. This resulted in the aforementioned all-time high market share of 51.4% in the first half of the year. To further expand its market coverage, Toyota has introduced relevant model offerings to support the mobility requirements of the mass market and other key segments. In line with the company’s thrust of “Mobility for All”, TMP introduced the Lite Ace in July. This affordable and reliable light commercial vehicle, which comes in four body types, namely the pickup, the panel van, the utility van, and the aluminum van, will address the evolving needs of MSMEs in the country. With the continuing economic recovery, higher mobility, and the return to normalcy, we are on track to achieve our sales volume targets for 2022,” GT Capital Auto and Mobility Holdings, Inc. (GTCAM) Chairman Vince S. Socco said.

GT Capital’s wholly-owned property subsidiary Federal Land, Inc. (Federal Land) posted total revenues of Php5.7 billion in the first half of 2022, representing an 11% increase from Php5.1 billion in the same period last year. Furthermore, the property developer recorded a substantial 31% growth in reservation sales to Php8.4 billion during the half, from Php6.5 billion in the same period last year. The company reported consolidated net income of Php676 million in the first six months of this year from Php587 million during the same period in 2021, for a 15% growth. Federal Land is expected to launch an additional two new projects within the year.

In June, Federal Land, GT Capital, SM Prime Holdings, Inc. (SMPH), and SM Development Corp. (SMDC) held a groundbreaking ceremony to inaugurate the first phase of Riverpark North, a 100-hectare mixed-use township project in General Trias, Cavite. Earlier this year in January, Federal Land forged a strategic partnership with major Japanese real estate developer Nomura Real Estate Development Co., Ltd. (Nomura) to form Federal Land NRE Global, Inc. (FNG), following the previous launches of Mitsukoshi Mall and The Seasons Residences in Bonifacio Global City (BGC).

Metro Pacific Investments Corporation (Metro Pacific) reported a consolidated core net income of Php7.5 billion for the first half of 2022, a post-pandemic high and up 24% from Php6.0 billion a year earlier. Improved financial and operating results of its constituent companies delivered a 15% increase in contribution from operations, mainly driven by a strong recovery in toll road traffic and growth in power consumption, as more industries ramped up operating capacity. Power accounted for Php5.9 billion or 60% of Metro Pacific’s net operating income; toll roads contributed Php2.5 billion or 26%; and water contributed Php1.4 billion or 15%.

AXA Philippines’ consolidated life and general insurance gross premiums reached Php15.1 billion in the first six months of 2022 from Php22.1 billion in the same period last year, due to limited bancassurance distribution during the Alert Level 3 lockdown in January and the volatility in the capital markets amid geopolitical uncertainties. The insurer’s consolidated net income amounted to Php1.1 billion in January to June 2022, from Php1.4 billion in the previous year. AXA Philippines attained life insurance sales in annualized premium equivalent of Php2.2 billion in the first half of 2022 from Php3.2 billion in the same period last year.

GT Capital is a listed major Philippine conglomerate with interests in market-leading businesses across banking, automotive assembly, importation, dealership, and financing, property development, life and general insurance, and infrastructure. Its component companies comprise of Metropolitan Bank & Trust Company (Metrobank), Toyota Motor Philippines Corporation (TMP), Toyota Manila Bay Corporation (TMBC), Toyota Financial Services Philippines Corporation (TFSPH), Sumisho Motor Finance Corporation (Sumisho), GT Capital Auto and Mobility Holdings, Inc. (GTCAM), JBA Philippines, Inc. (JBA-P), Premium Warranty Services Philippines, Inc. (Premium Warranty), Federal Land, Inc. (Federal Land), Philippine AXA Life Insurance Corporation (AXA Philippines), and Metro Pacific Investments Corporation (MPIC).