Bank, property, energy units fuel 28% Ayala earnings growth

MANILA, Philippines — Zobel family-led conglomerate Ayala Corp. booked a 28-percent surge in first-quarter earnings to P13 billion as its core businesses registered growth.

Excluding one-off items, core net income grew by 26 percent to P11.8 billion, the group’s stock exchange filing on Tuesday showed.

“We are seeing growth momentum across most of our businesses,” Ayala president and CEO Cezar Consing said in a statement. “This speaks to the resilience of the economy and our ability to provide products and services that are valued by customers.”

Ayala, the country’s oldest conglomerate, previously said it would focus on further growing its core businesses, particularly renewable energy (RE) firm ACEN Corp., to boost profits.

The banking business under Bank of the Philippine Islands booked record earnings during the quarter due to “robust revenue growth that more than offset higher operating expenses and provisions.”

Net income surged by 26 percent to P15.3 billion in the January to March period, as its merger with Robinsons Bank helped expand loan portfolio.

READ: BPI Q1 revenues soar, income hits P15.3B

Real estate unit Ayala Land Inc. likewise saw its earnings swell by 39 percent to P6.3 billion, propelled by strong revenues and stable leasing operations.

Reservation sales, an indicator of future revenue performance, jumped by 20 percent to P33.3 billion after launching new projects under the upscale brand Alveo Land.

RE ramp-up

ACEN, the Ayala group’s listed energy platform, ramped up its new operating capacity in the quarter, resulting in a 34-percent increase in net profit to P2.7 billion.

Total renewable attributable output soared by 49 percent to 1,580 gigawatt-hours.

ACEN president and CEO Eric Francia previously said they had surpassed the 5-gigawatt capacity mark nearly two years ahead of their original target.

READ: IMI narrowed losses in Q1

Meanwhile, the net income of telecommunications giant Globe Telecom Inc. dipped by 7 percent to P6.8 billion due to higher depreciation expenses and other nonoperating charges.

AC Industrials narrowed its losses to P931 million from P980 million.

Manufacturing arm Integrated Micro-Electronics Inc. widened its net loss during the quarter after selling its shares in electronics design firm STI Enterprises Ltd.

Ayala plans to ramp up capital spending this year by up to 14 percent to P284 billion to support the expansion plans of its core businesses. INQ