Listed firms’ profit up a modest 4.4% in H1

Corporations listed on the Philippine Stock Exchange grew their combined net profit by a modest 4.4 percent year-on-year during the first six months, much slower than the pace of economic growth during the period.

The top 30 Philippine corporations comprising the local stock barometer grew their net profit by 9.4 percent in the first semester year-on-year, accounting for 69.2 percent of earnings posted by listed firms, based on a PSE report.

“The profit increase of listed firms is in a single-digit range due partly to the absence of one-time gains and foreign exchange losses in some companies in the industrial and holding firms sectors. The economic growth prospects still persist and remain compelling. The income growth of companies should continue as we approach the tailend of the year,” PSE president and CEO Hans Sicat said.

The consolidated revenues of all listed companies increased by 9 percent year-on-year to P2.46 trillion in the first semester. Total net profit posted by all listed companies amounted to P275.5 billion, with companies from the financials, property and holding firm counters posting growth.

By sector, the total profits of banks surged by 61.7 percent in the January to June period, boosted by robust trading gains in the first three months of the year.

The property sector registered a 29.4-percent growth in combined net income due to higher real estate sales and rental income.

The mining and oil sector posted a 34.8-percent drop in its combined profit on lower earnings for most of the component companies and the suspension of some mining operations.

Meanwhile, the Philippine economy grew by 7.5 percent in the first semester, making it the fastest-growing economy in Southeast Asia. Doris C. Dumlao