Ayala Corp. net income rose 20% in 1st 9 months

The Ayala central business district. PHOTO FROM AYALALAND.COM.PH

MANILA, Philippines—Conglomerate Ayala Corp. said net income during the nine months to September rose by 20 percent to P10.4 billion, the company reported Thursday to the Philippine Stock Exchange.

The growth was driven by its real estate and banking units, the steady performance of its water business, and the sustained improvement in profitability of its international businesses, the company said in its disclosure to the stock exchange.

Ayala said core net income during the nine-month period hit P12.3 billion, up 32 percent, as the figure removes the impact of the accelerated depreciation arising from the network modernization of Globe Telecom.

The performance of its business units resulted in equity earnings of P13.9 billion—26 percent higher year-on-year, Ayala added.

It said Bank of the Philippine Islands contributed almost half of equity earnings. This was followed by Ayala Land Inc., Manila Water Co. Inc. and Globe Telecom.

“Overall, we are pleased that all our key business units are able to sustain their strong earnings growth trajectory. The economy continues to support much of this momentum with both consumer and business confidence largely upbeat,” Ayala president and chief operating officer Fernando Zobel de Ayala said in the statement. “This has, in turn, allowed our business units to continue to expand aggressively in their respective sectors and tap new customers particularly in underserved markets. This is particularly critical in light of the massive destruction caused by the recent earthquakes in Cebu and Bohol, as well as Supertyphoon Yolanda. The Ayala group has been engaged in relief and rehabilitation efforts at various levels across its business units.”

The Ayala group has invested nearly P76 billion of its P135.8-billion capital expenditure program allotted for this year, the statement showed.

At the parent level, Ayala has committed P10 billion in investments thus far, including its acquisition of an additional 10 percent stake in BPI and initiatives in various power generation projects.

The company recently announced the issuance of preferred shares worth P10 billion, proceeds of which would be used to prepay higher costing debt and ensure sufficient funding source for its planned investments.