GT Capital, SBC hike profits

GT Capital Holdings Inc., the listed holding company of billionaire George Ty, reported a 62-percent increase in first half net income to P9.1 billion, boosted by stronger revenues from automotive and real estate units, as well as a one-time gain from the sale of a 56-percent stake in power generation unit Global Business Power Corp.

Minus one non-recurring income amounting to P2.9 billion, GT Capital's first half net income was still up 16 percent to P6.21 billion from P5.35 billion a year.

First-half consolidated jumped 40 percent to P102.4 billion from P73.1 billion in 2015.

Security Bank Corp., meanwhile, said net income in the first half rose 4 percent to P4.9 billion year-on-year, driven mainly by higher net interest income.

Security Bank, among the country's biggest banks in terms of assets, said in a statement Monday net interest income grew 28 percent, which offset a P1.4-billion decrease in securities trading gains from a high of P3 billion in the first half of 2015 to P1.6 billion this year.

We are pleased with the quality of our earnings because it is coming from recurring income and core businesses. Growth has been balanced with both wholesale and retail banking registering encouraging results, president and chief executive Alfonso Salcedo Jr. said in a statement.

With the P37-billion equity investment by The Bank of Tokyo-Mitsubishi UFJ, Ltd. in Security Bank in April 2016, we now have P94 billion in capital to fuel the bank's expansion plans. Our medium-term objective is to grow our way back to market-leading return on shareholders' equity, Salcedo said.

GT Capital said the revenue growth came from an increase in the combined automotive sales of Toyota Motor Philippines Corp. and Toyota Manila Bay Corp. to P80.3 billion from P56.5 billion, higher combined sales of Federal Land and Property Company of Friends Inc. to P6.27 billion from P3.53 billion and higher equity in net income of associates totaling P4.95 billion from P2.75 billion.

Our strong performance for the first half of the year mirrors the country's macro economy. We had a busy first half in 2016; consolidating our life and non-life insurance businesses, merging two key Toyota dealerships, diversifying our power generation assets into a strategic investment into MPIC... and more recently, increasing to a majority stake our investment in the affordable housing sector, GT Capital president Carmelo Maria Luza Bautista said.

All these planned initiatives further strengthen GT Capital's strategic position moving forward, he said.

Security Bank's net income in the second quarter rose 42 percent year-on-year to P1.85 billion. The profit was driven by the 34-percent year-on-year increase in net interest income to P3.9 billion, a 41-percent rise in service charges, fees and commissions, and a three-fold increase in foreign exchange income.

With Julito G. Rada Corporate and commercial loans jumped 27 percent. Key consumer loan portfolios composed of home and auto loans and credit card receivables increased 61 percent. Net interest margin improved to 3.2 percent in the second quarter from 3.1 percent a quarter ago. With Julito G. Rada

Source: The Standard