Ayala Corp., the diversified holding company of the Ayala Group, reported a 3.7 percent decline in net income to P12.6 billion in the first quarter, weighed down by one-off items and weaker contributions from its telecom and energy units.
Stripping out non-recurring items, core net income also dropped 4 percent to P11.3 billion, reflecting lower earnings from Globe Telecom and AC Energy & Infrastructure Corp. (ACEIC). Gains from Ayala Land Inc. (ALI) and the Bank of the Philippine Islands (BPI) helped cushion the decline.
BPI posted strong results, with net income up 9 percent to P16.6 billion, supported by robust loan growth and wider net interest margins. Return on equity stood at 15.4 percent. ALI’s earnings climbed 10 percent to P6.9 billion, boosted by solid performance across property development, leasing, and hospitality segments.
Globe’s core net income fell 22 percent to P4.5 billion due to softer service revenues, higher depreciation, and financing costs. However, reported net income rose 3 percent to P7 billion, helped by equity gains from affiliates and a P2.2 billion dilution gain from Mynt.
ACEN saw a 28 percent drop in reported income to P2 billion, hit by lower local generation and weak spot market prices. ACEIC’s core net income fell 46 percent to P1.7 billion on the back of ACEN’s lower contributions, rising depreciation, interest expenses, and forex losses.
Ayala’s other income slipped to P2.35 billion from P4.37 billion a year ago, while financing charges rose to P9.68 billion from P7.95 billion.
“We are seeing strong starts from our banking, real estate, and fintech businesses,” said Ayala president and chief executive officer Cezar P. Consing. “Our telco and energy businesses have some catching up to do. Our smaller, newer companies are turning the corner. We are constructive on the year.”
