Ayala Corp. (AC), one of the largest conglomerates in the country, netted more than P10 billion during the first nine months of the year on the back of robust performance of its real estate and banking arm.
The Ayala group reported to the local bourse on Thursday that its net income in the nine months ending September rose by 20 percent year-on-year to P10.4 billion.
In year-to-date ending September, the Bank of the Philippine Islands (BPI), the conglomerate’s banking arm, contributed nearly half of AC’s equity earnings as the bank’s net income registered a 19-percent jump year-on-year to P15.8 billion. BPI remains well capitalized with a capital adequacy ratio (CAR) of 16.1 percent.
AC’s real estate unit, Ayala Land Inc. (ALI), continued to maintain strong momentum. Year-to-date earnings of ALI rose by 30 percent to P8.6 billion, putting it closer to its five-year target to hit P10 billion in net income by 2014.
ALI’s consolidated revenue reached P57.7 billion, up 38 percent compared to the same period last year, driven by the upbeat performance of all key business lines.
Its water business, Manila Water Co. Inc., registered P4.3 billion in net income in the first nine months, which is 9-percent higher versus the same period last year, while its revenue rose 6 percent to P11.5 billion.
Ayala’s telecom unit, Globe Telecom Inc., sustained its growth momentum with consolidated services revenue up 10 percent to P67 billion, driven largely by its mobile business. Globe’s reported net income reached P3.5 billion.
The conglomerate’s international businesses, on the other hand, sustained improvements in profitability with its electronics unit, Integrated Microelectronics Inc. (IMI), reporting a 6-percent increase in net income, earning $5.3 million during the period. IMI’s revenue also rose by 10 percent to $547.1 million.
Its business process outsourcing unit, LiveIt, also achieved continued growth in revenue and profitability. At the end of September, AC had nearly P33 billion in cash and a low net gearing level, with a net debt-to-equity ratio of 0.28 to 1.