Conglomerate Ayala Corp. said Thursday nine-month net profit declined 75 percent to P11.4 billion from P46.1 billion in the same period last year as the pandemic hurt its real estate and banking businesses.
The country’s oldest conglomerate said it saw recovery in overall business in the third quarter when net income more than doubled to P3.4 billion from the second quarter on improved performance of Ayala Land Inc. and AC Industrials, lower loan loss provisions booked by Bank of the Philippine Islands and the absence of re-measurement losses from Manila Water Co. Inc.
“It is encouraging to see improvements in the performance of our businesses as the economy gradually reopens. Ayala Land, BPI and AC Industrials have all shown a marked recovery in their third-quarter results compared to the previous period,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said in a disclosure to the stock exchange.
“Meanwhile, Globe and AC Energy are fairly stable components that have provided a boost in our portfolio in recent months. We are hoping to see this trajectory sustained in our businesses with a further loosening of restrictions,” he said.
The group attributed the positive recovery in the third quarter to the easing of quarantine restrictions in the country which helped restart the domestic economy.
Ayala Land registered a 73-percent decline in net income in the first three quarters to P6.4 billion as a result of lower project bookings from suspended construction activity, restricted mall and hotel operations and closure of resorts.
BPI’s nine-month profit dropped 22 percent to P17.2 billion because of P21.1 billion in loan loss provisions it booked in anticipation of an increase in non-performing loan levels.
Net income og Globe telecom Inc. contracted 10 percent to P15.9 billion, on higher depreciation expenses from its continued network investments.
AC Energy Philippines Inc. recorded a net income of P5.6 billion, a decline from its year-ago level of P24.3 billion, which included gains from the partial divestment of its thermal assets.
AC Industrials recorded a net loss of P2.1 billion in the first nine months as its global manufacturing arm started to gradually recover on the back of renewed demand and normalized operations. Its Philippine automotive business also continued to be negatively affected by the health crisis.