BPI boosts Ayala bottom line by 18%

Robust growth across its businesses pulled up the first semester core earnings of Zobel family-led Ayala Corp. by 18 percent to P24.3 billion.

Including “significant” one-time gains, the net income of the country’s oldest conglomerate expanded by 21 percent to P22.3 billion.

“We will continue to grow our quality businesses and explore initiatives to improve shareholder value,” Ayala president and CEO Cezar Consing said in a statement on Wednesday.

READ: BPI secures P33.7B from blockbuster bond sale

Growth was driven mostly by Bank of the Philippine Islands (BPI) as it set a record semester income of P30.6 billion, up by 22 percent.

Revenues likewise outpaced increases in operating expenses and provisions, while return on equity remained at 15.5 percent.

Net interest income registered a 22-percent uptick to P61.3 billion as BPI’s loan portfolio grew.

Meanwhile, property arm Ayala Land Inc. booked a 15-percent jump in earnings to P13.1 billion due to strong demand amid heightened consumer activity.

READ: Ayala Corp aims to raise up to P15B via preferred shares issuance

Its revenues likewise climbed by 28 percent to a record P84.3 billion.

Telecommunications giant Globe Telecom Inc.’s earnings inched up by 1 percent to P14.54 billion as declines in its home broadband segment offset growth in the mobile and corporate data businesses.

Increase capital spending

Earlier this month, Ayala subsidiary AC Ventures Holding Corp. increased its ownership in Mynt, the parent firm of e-wallet GCash, by 8 percentage points to 13 percent.

The transaction valued mint at P286.4 billion and heightened GCash’s initial public offering prospects.

Listed energy platform ACEN Corp. saw its net income surge by 49 percent to P6.3 billion due to additional operating capacity across major markets, specifically the Philippines.

Meanwhile, AC Health widened its net loss to P327 million from P194 million due to costs related to the development of its cancer care hospital in Taguig City.

At the same time, AC Industrials narrowed its net loss to P5.3 billion from P5.8 billion due to lower impairments. Excluding one-off items, its core net loss widened to P596 million from P466 million.

The conglomerate earlier announced plans to increase capital spending this year by 14 percent to P284 billion as its core businesses intensified expansion plans.

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