Ayala income up 56% to P16.3 B in Jan – June

Ayala Corp., the country’s oldest conglomerate, reported a net income attributable to parent of P16.3 billion in the first semester, up 56 percent from P10.4 billion a year earlier mainly due to higher revenues of banking arm BPI and Globe Telecom.

In the second quarter alone, Ayala’s net income reached P8.5 billion, up 68 percent from P5 billion a year ago.

Gross revenue reached P117.4 billion in the first half from P106.5 billion a year ago.

Ayala president and CEO Fernando Zobel de Ayala said the group’s performance in the first half reflects the momentum of the country’s reopening.

“This is particularly evident in our cyclical units, Ayala Land and BPI, which significantly rebounded in the second quarter amid revitalized mobility and consumer confidence,” Zobel said.

At the same time, the company is cognizant of the current macroeconomic headwinds that have impacted its different businesses in varying degrees.

He said, the company expects to sustain growth for the rest of the year.

“We believe that there is still growth to be realized for the rest of the year with what we are seeing on the ground,” Zobel said.

By business segments, BPI’s net income expanded by 73 percent to P20.4 billion in the first semester due to robust loan growth, higher net interest margins, and lower loan loss provisions, boosted by a gain from a sale of a property.

Ayala Land’s net income jumped by 34 percent to P8.1 billion in the first half due to improved operations of its various business segments in the second quarter as local economic activity progressed.

Telco giant Globe Telecom’s net income, meanwhile, increased by 51 percent to P19.7 billion in the first half due to higher revenues from data services and growth from nontelco revenues as well as a net gain from the partial sale of its data center business.

AC Energy and Infrastructure Corp. saw its net income decrease 23 percent to P2.7 billion in the first semester as a combined effect of Ayala’s consolidation of its reduced ownership in ACEN, various one-offs incurred in the first quarter of the year, and impact of its divestment in GN Power in 2021.

Adjusting for one-offs and Ayala’s lower economic stake in ACEN, ACEIC’s net income would have declined two percent to P3.4 billion year-on-year.

In the second quarter alone, ACEN’s net income jumped by 25 percent to P1.8 billion yearon-year on the back of higher revenues from new operating plants and its reversal to a net seller position.