Consolidated net profit up 17.8% at P683B on revenue of P7.29T
Companies listed on the Philippine Stock Exchange (PSE) posted consolidated net income exceeding P600 billion for 2016, up more than 17 percent from the year earlier on the back of improved business performance and lower operating costs.
“The amount recorded in 2016 is the highest consolidated net income of listed companies since the PSE started tracking the cumulative profit of listed firms,” the exchange said in a statement released over the weekend.
The listed companies’ combined net income reached P683.3 billion last year, rising 17.8 percent from P580.15 billion in 2015, the PSE said.
Consolidated revenues grew 6.6 percent to P7.29 trillion from P6.84 trillion the preceding year.
The top 30 companies alone – the PSEi 30 – recorded a 12.1 percent increase in combined net income to P472.93 billion.
They accounted for 69.2 percent of the total market’s net profit.
“We are hopeful that the profitability shown by listed companies in 2016 will be sustained through 2017,” PSE President and Chief Executive Officer (CEO) Ramon Monzon said.
“We believe that the growth story of the country is very much intact and this should continue to attract investors into our stock market,” he added.
Gains in net profit ran across the board in 2016.
Services lead gains
The Services sector posted the largest percentage gain of 34.6 percent to P93.6 billion in 2016, driven by robust revenues raked in by the companies.
The aggregate net income of Mining and Oil firms rose 21.7 percent to P13.91 billion on improved gold prices.
Companies in the Industrial sector saw a 19.9 percent increase in net income to P156.93 billion, mostly on lower operating expenses and improved sales.
The combined profit of holding firms, on the other hand, climbed 19 percent to P212.68 billion on higher income from its business units.
The consolidated net income of banks and other financial services companies came in at P114.38 billion, a 12.3 percent gain from 2015, boosted by higher interest income.
Securities in the property sector registered a 4.5 percent expansion in net profit on higher real estate sales and rental income.
The present PSE is the national stock exchange of the Philippines. It was established in 1992 as a result of a merger between the old Manila Stock Exchange – one of the oldest bourses in Asia – and the Makati Stock Exchange.