GT Capital Holdings (GTCAP) Q2 2024 earnings summary

Executive summary

• Consolidated net income reached Php13.78B in 1H 2024, down 17% year-over-year due to lower property sales and non-recurring items, but up 5% excluding these effects.

• Core net income fell 17% to Php13.85B, reflecting lower non-recurring gains and property sales compared to the prior year.

• Metrobank, Metro Pacific, and Toyota posted record results, with strong growth in banking, infrastructure, and automotive segments, while real estate and some finance subsidiaries saw declines.

• Electrified vehicles gained traction, with Lexus at 91% and Toyota at 5.2% of total sales, aided by tariff exemptions.

• Strategic projects advanced, including new launches and groundbreakings in property and logistics.

Financial highlights

• Core net income (excluding lot sales and CARS incentives) rose 5% to Php13.85B in 1H 2024 from Php13.19B in 1H 2023.

• Consolidated revenues rose 2% year-over-year to Php150.75B, driven by an 8% increase in automotive sales and 4% higher equity in net income of associates.

• Metrobank net income hit a record Php23.6B (+13%), with loan growth of 15% and improved asset quality.

• Metro Pacific core net income grew 27% to Php12.5B, driven by higher volumes and tariff adjustments.

• Toyota revenues rose 7% to Php113.9B, with net income at Php7.5B (-6% YoY, flat excluding CARS incentive), and record 104,350 retail vehicle sales (+11.5%).

Outlook and guidance

• The group approaches the second half of 2024 with measured optimism, expecting continued growth across core businesses, especially in automotive and banking.

• Electrified vehicle sales are expected to further increase, supported by new models and government incentives.

• Real estate sales may remain subdued due to fewer new launches and near sell-out of key projects.