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By: Marvin Germo | May 14, 2019

GTCAP Profit During The First Three Months 

GT Capital Holdings, Inc. has generated a profit 8% lower than last year. During the first three months, it reported a net income attributable to parent of P3.42 billion, lower than the P3.74 reported in 2018. The lower sales from it property and auto segments triggered this downward trend in the firm’s performance. Its real estate and automotive performances are causing slow growth in the revenue. But since it’s just the first quarter of the year, should investors be worried about this report? Let’s take a look at its segment’s performances.

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Stock Smarts Singapore —  May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila —  June 15, 16, 22, 23, & 29, 2019
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Toyota Motor Philippines Corporation Production 

As part of GTCAP’s performance record this first quarter, its automotive segment, Toyota Motor Philippines Corporation (TMP) made a flat revenue or P33.8 billion in figures. Compared to the past sales of P1.8 billion, this recent revenue growth is 25% lower. The number of units sold reached 33,554 or 3% lower than the 34,440 units dispatched during the same timeline last year. Thus, the market share of the automotive operation went down to 34.6% by the end of March while the last year’s part was 35.5%. But despite this drop, TMP is still positioned as the leading automaker in the country.

Banking And Insurance Segments

GTCAP’s banking and insurance businesses contributed to the growth in revenue which was 3% higher or P47.02 billion. In fact, Metropolitan Bank and Trust Company (Metrobank) has increased its net income by 15% to P6.8 billion during the first quarter of the year. This net income was uplifted by the loan expansion, high income based on fees, and margin growth, leaving the bank’s loan portfolio to P1.4 trillion or 9% higher than what was previously reported. The deposits stood at P1.6 trillion while the consolidated assets and equity reached P2.3 trillion and P288,7 trillion respectively. Although the automotive industry did not perform well as of this quarter, it was balanced by the increased contributions of GTCAP’s banking segment.

GTCAP’s Positive Outlook

GTCAP has a positive outlook amidst slow growth in its automotive and property segments. The firm thinks that the current status of TMP’s performance this quarter is already a sign of recovery while taking into account the effect of the TRAIN law that increased the excise tax on vehicles. Last 2018, the firm had already experienced a 12% decline in the sales volume. Nevertheless, GTCAP is convinced that the rest of the year will bring in more success now that inflation is easing up and the consumer confidence is stabilizing. This year, the P51.7 billion capital expenditure allocation will go to automotive and property business unit expansion of the firm.

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