Conglomerate Ayala Corp. booked a net income of P19.6 billion in the first nine months of the year, up 11 percent year-on-year, on the robust performance of its banking, real estate and automotive businesses.
Ayala said in a disclosure to the stock exchange the healthy earnings trajectory was driven by strong equity earnings contribution of its business units, which amounted to ₱23.6 billion, up 10 percent on-year.
Equity earnings from the Bank of the Philippine Islands and Ayala Land climbed 23 percent and 17 percent, respectively.
Meanwhile, equity earnings from Ayala Automotive nearly tripled during the period.
“As they execute on their individual 2020 strategies, our businesses continue to perform well and within targets. As we develop new investments, we are happy to see our power business emerging to be a significant player in the space,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
“With 1,000 megawatts in attributable capacity, AC Energy is beginning to be a major contributor to the country’s energy requirements. Further, we expect it to be a meaningful part of Ayala’s portfolio in the next five years,” he added.
Ayala Land recorded a net income of ₱15.1 billion in the first nine months of the year, a 17 percent-growth year-on-year driven by higher revenues from its residential development and commercial leasing segments as well as commercial lot sales.
Strong gains from its core banking, trading, and fee-based businesses sustained BPI’s net earnings in the first nine months, rising 26 percent to ₱17.4 billion from a year-ago level.
BPI’s total revenues expanded 14.3 percent from a year ago to ₱50.4 billion.
Due to intense business competition and higher operating expenses, net income of Globe Telecoms declined 17 percent to P11.7 billion. Service revenues, however, grew 7 percent to ₱89.1 billion, spurred by gains across data-related product segments.
Ayala early this year set up AC Industrials to house the group’s investments in industrial technologies, especially Integrated Micro-Electronics and Ayala Automotive.
On a combined basis, Ayala’s industrial technologies portfolio reached a net income of ₱1.5 billion in the first nine months, 25 percent higher than a year ago on the solid performance of automotive dealership.
Equity earnings of AC Energy expanded nearly threefold in the first nine months of the year as operating levels of power generation plants significantly improved.
It recorded a net income of ₱1.2 billion, 28 percent lower year-on-year due to the absence of capital gains from Ayala’s partial sale of its stake in North Luzon Renewable Energy Corp. in the previous year.
Ayala Corp. seeks to double its net income to P50 billion by 2020.
