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Banks and auto units boost GT Capital’s profits

Banks and auto units boost GT Capital's profits

GT CAPITAL Holdings, Inc. announced on Tuesday that its basic net income increased by 48% to reach 11 billion pesos in 2021, while consolidated income increased by even more than 68%, driven by growth in its banking activities. and automobiles.

“2021 has been a year of strong rebound for our group. Given the increased mobility and gradual reopening of the Philippine economy in the fourth quarter, GT Capital delivered strong overall results in 2021 as we approach pre-COVID levels,” said GT Capital President Carmelo L. Bautista, in a company statement.

Metropolitan Bank & Trust Co. (Metrobank), in which GT Capital has significant stakes, reported a 60% increase in net profit to 22.2 billion pesos.

In the fourth quarter of 2021, profits more than doubled to 6 billion pesos, the Ty-led holding company said, citing lower provisions “as the loan portfolio remained healthy”.

Net interest margin has stabilized at 3.4% since the second quarter of 2021, as the sequential quarterly recovery in corporate and credit card loans is supported, while the 12% increase in current account deposits and low-cost savings account (CASA) continued to contribute to the overall reduction in the cost of financing.

Robust fees and other income as well as lower operating expenses further contributed to the bank’s strong earnings performance, according to the disclosure.

“Despite last year’s challenging conditions, Metrobank’s non-performing loan (NPL) ratio fell from 2.4% in 2020 to 2.2% in 2021, while NPL coverage remained sufficient at 174 .7%,” GT Capital said.

“Metrobank’s positive performance in 2021 validates its balance sheet strengthening and proactive provisioning strategies during the pandemic. The bank has emerged stronger and well prepared to meet the needs of its stakeholders as the economy moves towards a full recovery,” said Fabian S. Dee, chairman of the bank.

Meanwhile, Toyota Motor Philippines Corp. (TMP) recorded an 82% increase in net profit to P6.2 billion in 2021. GT Capital is a joint venture partner of the country’s largest automobile company.

“It should be noted Toyota Motor Philippines, which has dominated the automotive market for the 20and consecutive year, achieving a record market share of 46.3%, while reaching the sales milestone of over two million vehicles in the Philippines,” Mr. Bautista said.

Consolidated revenues increased by 32% to reach 131.3 billion pesos in 2021, compared to 99.8 billion pesos the previous year.

“Toyota topped the market with vehicle retail sales of 129,667 units in 2021 compared to 100,019 units in 2020, an increase of 30%. The Philippine auto market, on the other hand, grew by 16% to 280,338 units versus 241,924 units the previous year,” the company said.

The automaker expanded its lineup by launching new GR Sport variants, including the Innova in February and the Camry Hybrid EV in December.

In October, Toyota surpassed the 100,000-unit sales level for its Vios model under the government’s Comprehensive Automotive Resurgence Strategy, or CARS program, making the company eligible for the production volume incentive under the program. .

November marked the start of operations of JBA Philippines, Inc., a joint venture between Japan Bike Auction Co. Ltd. and GT Mobility Ventures, which in turn is a joint venture between GT Capital Auto and Mobility Holdings, Inc. and Mitsui & Co., Ltd. (Japan). The company offers a transparent online auction platform for used vehicles, which extends the value chain of GT Capital’s automotive business.

“As the Philippine economy rebounded in 2021, so did the automotive sector. TMP delivered strong results last year, far outpacing the industry’s growth momentum. We are very encouraged by the continued our strong market penetration despite four months of mobility restrictions in 2021 and accompanying global supply chain disruptions,” said GT Capital Auto and Mobility Holdings, Inc. President Vince S. Socco.

He said TMP’s market share is Toyota’s highest in the region and third globally.

“As the economy and auto market recover, TMP remains reasonably optimistic. In fact, in March this year, TMP reached a remarkable milestone, selling more than two million units in the country since it began operations. more than three decades ago,” Mr. Socco said.

He said the company’s main growth drivers are its broad product line, strong brand equity and extensive nationwide dealer network.

“Given increased spending related to the upcoming national elections and the return of banks offering auto finance, we expect to reach pre-COVID sales levels by this year. In addition, we look forward to strengthening our presence in the used car market to create a more robust mobility ecosystem,” he added.

Meanwhile, GT Capital saw stronger real estate sales from Federal Land, Inc. and a higher net income contribution from associate Metro Pacific Investments Corp. (MPIC), which also contributed to the positive performance of the holding company.

Federal Land recorded a 57% increase in its consolidated net profit to 1 billion pesos in 2021 from 600 million pesos in 2020 due to continued construction activities, increased project bookings and strengthening of sales activities.

The real estate company recorded revenues of 10.4 billion pesos in 2021, an increase of 12% compared to 9.3 billion pesos in 2020.

In February of this year, Federal Land launched Aki Tower, The Seasons Residences’ third residential tower located in its future Grand Central Park community in Bonifacio Global City.

Meanwhile, MPIC’s consolidated basic net income rose 20 percent to 12.3 billion pesos last year from 10.2 billion pesos a year earlier. GT Capital said the “substantial improvement” was largely due to improved traffic on its toll roads and increased electricity volume sold by its subsidiary Manila Electric Co.

“This acceleration in growth reflected improved performance despite the continued imposition of varying levels of quarantine across the country to contain the COVID-19 pandemic and was partially augmented by the impact of the CORPORATE RECOVERY (CREATE) Act. and Tax Incentives for Enterprises), which lowered corporate tax rates from 30% to 25%,” he added.

Mr. Bautista said GT Capital’s environmental, social and governance (ESG) initiative is highly rated by rating agencies such as MSCI and S&P.

“We will therefore continue to adapt ESG best practices in the future. Despite the recent geopolitical conflict between Russia and Ukraine and rising oil and commodity prices, we look forward to 2022 with reasonable optimism as we seize new growth opportunities,” he added.

Trading on Tuesday, shares of GT Capital fell 0.19% or P1.00 to P527 each. — Luisa Maria Jacinta C. Jocson