Ty family-led conglomerate GT Capital Holdings saw a 26 percent year-on-year drop in first quarter net profit to P2.54 billion due to slower earnings from its automotive, banking, infrastructure and insurance businesses.

The slowdown was tempered by higher earnings contributed by the property development business under Federal Land and financing business under Sumisho Motor Finance Corp., based on GT Capital’s first quarter earnings report.

Core net income attributable to equity holders of the parent company declined by 15 percent year-on-year to P2.84 billion in the first quarter. This was after adding back P300 million worth of non-recurring expenses incurred by Metro Pacific Investments Corp. and amortization of fair value adjustments arising from various business combinations.

Automotive operations comprising the sale of assembled and imported auto vehicles and spare parts by Toyota Motors Philippines decreased by 15 percent year-on-year to P32.78 billion in the first quarter due to a 21 percent drop in wholesale volume from 32,394 units to 25,636 units.

Federal Land’s real estate sales and interest income on real estate sales, on the other hand, grew by 33 percent to P2.39 billion in the first quarter.

Equity in net income of associates and joint ventures declined by 19 percent year-on-year to P2.68 billion in the first quarter, primarily due to year-on-year decreases in the net income of the following associates:

– Metrobank’s net income fell by 9.3 percent to P6.12 billion due to a significant increase in provisions for credit and impairment losses, but partially mitigated by increased ownership by GT Capital from 36.36 percent in the first quarter of 2019 to 37.15 percent in the first quarter of 2020;

– Metro Pacific Investments Corp.’s net income fell by 47.5 percent to P1.86 billion due to non-core expenses, primarily the provisioning in full of the carrying value of Meralco’s investment in Pacific Light Power; and,

– AXA Philippines’ net profit fell by 54 percent to P370 million due to unrealized equity losses in the life insurance business.

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