Ayala Corp. first-quarter profit grows to P4.5 billion

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Listed conglomerate Ayala Corp. recorded a 29-percent increase in its first-quarter net income, as its earnings from its banking and property arm significantly climbed in the same period.

A disclosure to the Philippine Stock Exchange on Wednesday showed that Ayala Corp.’s earnings in the first quarter of the year reached P4.5 billion, 29 percent higher than its 2012 first-quarter profit, while its core net income, which excludes the impact of Globe Telecom’s accelerated depreciation costs, grew even higher to P5.2 billion, a 49 percent increase year-on-year.

“The positive macroeconomic conditions continue to present opportunities for further investment and expansion in each of our businesses. We continue to take advantage of these and have set group-wide capital expenditure of P136 billion this year to pursue our growth objectives,” said Fernando Zobel de Ayala, Ayala Corp. president and chief operating officer.

The conglomerate said that the improvement in its earnings was driven by its banking unit, Bank of the Philippine Islands (BPI), which delivered a record net income for the quarter combined with Ayala Corp.’s increased equity stake in the bank. Meanwhile, Ayala Corp.’s property unit, Ayala Land Inc. (ALI), also posted robust earnings growth during the period in review.

Both units, according to the group, accounted for 88 percent of equity earnings during the quarter.

BPI posted a net income of P8.4 billion for the first quarter, 43 percent higher than last year’s P5.8 billion, while ALI’s net income grew by 30 percent to P2.8 billion on the back of sustained revenue growth.

The net income of Globe Telecom rose by 13 percent to P3.1 billion, while Manila Water posted a steady net income of P1.3 billion for the quarter.

Meanwhile, Integrated Micro-Electronics Inc., one of Ayala Corp.’s international businesses, registered a net income decline to $253,000 from $854,000 from lower capacity utilization, particularly of its facilities in China.

Madelaine B. Miraflor

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