GT Capital Holdings Inc., the investment company of tycoon George Ty, earmarked P47.3 billion for 2017 capital expenditures primarily to fund acquisitions in the financial services and infrastructure sectors.
GT Capital said in a regulatory filing it budgeted P25 billion for acquisitions at the parent level in the areas of financial services and infrastructure.
The conglomerate also allocated P8 billion for land acquisitions of mass housing unit Property Company of Friends Inc. and P3 billion for capital calls of joint ventures and office building developments of Federal Land Inc.
Banking arm Metropolitan Bank & Trust Co. will get P5 billion to fund branch expansion, renovation and systems enhancement.
The remaining P6.3 billion would be for the expansion of automotive, insurance and dealership units.
GT Capital said the 2017 expenditures would be funded by internal funds and debt.
GT Capital’s net income increased 21 percent in 2016 to P14.6 billion from the previous year, boosted by a one-time gain from the sale of shares in power and insurance businesses.
The conglomerate said minus the P3.2-billion extraordinary income from the sale of shares of stock in Global Business Power Corp. and Charter Ping An Insurance Corp., core net income grew 2 percent to P11.6 billion in 2016 from P11.4 billion in 2015.
Consolidated revenues increased 44 percent in 2016 to P202.1 billion from P139.9 billion in 2015.
“The year 2016 was very busy for us. We diversified our investment portfolio, shifting from power generation to infrastructure and utilities with our strategic investment into Metro Pacific. We consolidated our life and non-life insurance businesses in order to achieve scale and synergy. We invested in the affordable housing sector, boosting our landbank with over 1,600 hectares of prime property for future development,” GT Capital president Carmelo Maria Luza Bautista said.
GT Capital has interests in banking, automotive assembly, importation, dealership and financing, property development, life and non-life insurance and infrastructure.
Banking unit Metrobank reported a consolidated net income of P18.1 billion in 2016, down nearly 3 percent year-on-year on slower-than-expected growth in interest earnings.
Toyota Motor Philippines Corp. posted a 17-percent growth in consolidated net income to P11.9 billion in 2016 on higher vehicle sales. The country’s leading automotive company sold 158,728 units in 2016, a 27-percent improvement from 125,027 units it delivered in 2015.