Ayala Corp., the oldest conglomerate in the country, posted a 22 percent jump in net profit last year on the back of the strong performance of its real estate and banking businesses, giving it confidence it can sustain double-digit earnings growth this year.
In a filing with the Philippine Stock Exchange on Monday, Ayala Corp. said it earned P12.8 billion in 2013, up 22 percent from the P10.5 billion net profit recorded in 2012.
Taking out the impact of the accelerated depreciation from the network transformation initiative of Globe Telecom Inc., its telecom unit, Ayala Corp. said core net income last year was P14.8 billion.
The conglomerate also said equity earnings jumped 23 percent to P17.6 billion in 2013, thanks to the strong contributions of its banking and property businesses, Bank of the Philippine Islands (BPI) and Ayala Land Inc. (ALI).
ALI, the group’s property arm, registered a net income of P11.7 billion in 2013, a 30-percent improvement from the year-ago level, on double-digit revenue growth and stable margins across its business segments.
BPI registered a 15-percent growth in net income to P18.8 billion, driven primarily by higher interest income as its loan portfolio expanded by 21-percent expansion.
Ayala owns 48.3 percent of BPI and roughly 50 percent of ALI.
This year, the companies under Ayala Corp. will be spending P190 billion to fund their expansions, significantly higher than the previous year’s roughly P120 billion that went to its real estate, telecommunications and water businesses. Investments in the energy sector were also made.
“As we ramp up our power business and as the economic environment remains sound, we are optimistic we can sustain double-digit earnings growth through 2014,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said.
Earlier this year, Ayala Corp. completed the acquisition of approximately 17 percent in GNPower Mariveles Coal Plant Ltd. Co. GNPower is the owner of a 600-megawatt coal-fired power generation plant in Mariveles, Bataan Province.