GT Capital first-half income falls 11% as auto demand slows

Insider Spotlight

• GT Capital’s first-half net income fell 11 percent to P16.41 billion as weaker economic activity and softer automotive demand weighed on results
• Toyota Motor Philippines’ revenue contracted 15 percent to P115.40 billion, although June sales showed early signs of recovery
• Metrobank and Metro Pacific Investments Corp. provided support, while AXA Philippines delivered strong premium growth
  
  
  
  

GT Capital Holdings Inc. saw consolidated net income decline 11 percent to P16.41 billion in the first half from P18.42 billion a year earlier, reflecting slower economic activity and weaker automotive demand.

The conglomerate’s results highlight how softer consumer confidence, elevated inflation and slower government spending are filtering through major Philippine businesses, particularly autos, even as banking and infrastructure earnings remain resilient.

Driving the news

Toyota Motor Philippines Corp. generated P115.4 billion in revenue, down 15 percent as higher global oil prices dampened vehicle demand. It booked P8.4 billion in net income.

Still, Toyota’s sales increased 3.2 percent month-on-month in June, suggesting demand may be starting to recover. Electrified vehicles accounted for 11.1 percent of its first-half sales, with volumes in the category rising 23.3 percent year-on-year.

The bright spots

Metropolitan Bank & Trust Co. posted P24.9 billion in net income, supported by loan growth and stable margins. Net interest income climbed 12.8 percent to P67.7 billion, while gross loans expanded 12.4 percent.

Metro Pacific Investments Corp. recorded core net income of P16 billion, up 6 percent.

AXA Philippines, meanwhile, grew gross premiums by 31 percent to P21.8 billion, with life premiums rising 32 percent to P19.6 billion.

Risk watch

Metrobank increased provisions by 26.8 percent amid weaker macroeconomic conditions, although its non-performing loan ratio remained at 1.8 percent and non-performing loan coverage stood at 133.3 percent.

What they're saying

“GT Capital's first half results reflect the impact of a slower macroeconomic environment. Nevertheless, we will approach the second half of the year with a continued focus on disciplined execution of our strategic priorities. This is supported by the stability of our investment portfolio and the strength of our balance sheet,” GT Capital president Carmelo Maria Luza Bautista said in a press statement.

“The operating environment in the first half required us to stay disciplined and focused. Our results reflect the strength of Metrobank’s core businesses, the continued trust of our clients, and our prudent approach to balancing growth and risk. We will continue to support our clients while pursuing sustainability,” said Metrobank president Fabian Dee. 

What’s next

GT Capital is banking on disciplined execution and portfolio stability in the second half, while Toyota expects improving market conditions to help it reach its three-million cumulative vehicle sales target this year. —Vanessa Hidalgo| Ed: Corrie S Narisma