MANILA, Philippines – GT Capital Holdings Incorporated is spending as much as P111.9 billion this year, mainly to fund its banking unit's improvement of capital ratio and expansion of electronic banking channels.
The George Ty-led holding firm told the local bourse last week that it has earmarked between P109.9 billion and P111.9 billion for capital expenditures in 2018, with Metropolitan Bank & Trust Company (Metrobank) taking a big chunk of the pie.
Metrobank, the Philippines' 2nd largest bank, allocated a capital spending budget of P63 billion to P65 billion this year to improve capital ratio, support loan expansion, expand electronic banking channels, install more automated teller machines, renovate some of its branches, and build more new ones, according to the listed firm's information sheet. (READ: GT Capital ventures into microfinance)
Of the over P100-billion capital spending budget, GT Capital allocated P9 billion for Federal Land Incorporated's capital calls in joint ventures and office buildings, as well as P7.9 billion for the expansion plans of Property Company of Friends Incorporated (Pro-Friends).
Meanwhile, its automotive unit Toyota Motor Philippines Corporation will get P6.3 billion for the launch of its new vehicle models and logistics expansion.
Toyota Manila Bay Corporation will have P1 billion this year for dealership expansion and renovation, while Toyota Financial Services Philippines Corporation will get P1.9 billion for its capital ratio improvement and loan expansion.
GT Capital's information sheet also showed that less than a billion pesos will go to Philippine Axa Life Insurance Corporation and Sumisho Motor Finance Corporation for their respective expansion plans.
GT Capital also set aside P20 billion for its potential investments. The group plans to fund its huge capital spending budget through internal funding and debt.
The listed firm saw a 29% growth in core net income of P15 billion in 2017, from P11.7 billion in 2016.
"GT Capital's key sectors continue to be in the sweet spot, in line with our country's stage of economic development, reaping demographic dividends," its president Carmelo Maria Luza Bautista said in a separate statement.
GT Capital is a listed major Philippine conglomerate, with interests in banking; automotive assembly, importation, dealership, and financing; property development; life and non-life insurance; infrastructure; and motorcycle financing. – Rappler.com