LTG nets P3.73B in H1

Tycoon Lucio Tan’s conglomerate LT Group Inc. (LTG) saw a lower bottom line in the first six months of 2021.

In a disclosure to the Philippine Stock Exchange on Wednesday, LTG reported an attributable net income—or earnings excluding minority interests—of P3.73 billion, down 63% from P10.03 billion a year earlier.

“This is mainly due to the higher provisioning for credit losses booked by its banking subsidiary and the elimination of the gain from the transfer of real estate assets at the consolidated level,” LTG said.

This, after LTG’s banking unit Philippine National Bank (PNB) had a “negative net contribution of P6.46 billion after eliminating the gain of P33.60 billion at the consolidated LTG level.”

In particular, PNB reported a net income of P22.20 billion, inclusive of a P33.60 billion gain from the transfer of some properties into PNB Holdings Corporation.

“However, at the consolidated LTG level, these gains were not recognized, which together with higher provisioning for credit losses resulted in a P6.46 billion loss contribution from PNB to LTG,” LTG said.

On the other hand, LTG’s tobacco business accounted for P8.97 billion of total attributable income.

Tanduay Distillers, Inc. (TDI) added P602 million, while Asia Brewery, Inc. (ABI) contributed P343 million.

The company’s property arm Eton Properties Philippines Inc. (Eton) accounted for P287 million.

The 30.9% stake in Victorias Milling Company, Inc. (VMC) added P169 million to LTG’s bottom line.

LTG said it declared a P0.24 per share special cash dividend or a total of P2.60 billion and was paid in July.

This brought total cash dividends declared in 2021 to P0.48 per share or P5.19 billion. This is equivalent to 24.7% of LTG’s 2020 attributable net income.—AOL, GMA News