Ayala Reports Higher Earnings in First Quarter of 2024

Ayala Corporation shows robust performance once again, with earnings soaring by 28 percent from January to March this year. This increase brought the Zobel family-led conglomerate’s net income to P13 billion, fueled by its banking and property segments, among others.

Core earnings, which exclude one-off items, rose by 26 percent to P11.8 billion, while Ayala’s revenues climbed by 10.5 percent to P87.27 billion.

“We are seeing growth momentum across most of our businesses,” Ayala President and CEO Cezar Consing said. “This speaks to the resilience of the economy and our ability to provide products and services that are valued by customers.”

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The country’s oldest conglomerate specifically attributed its performance to the growth of its core businesses in the banking, real estate, and power sectors: the Bank of the Philippine Islands (BPI), Ayala Land, Inc. (ALI), and ACEN Corporation.

BPI logged a record-high quarter net income of P15.3 billion in the first three months of 2024. This is higher by 26 percent year-on-year. The bank’s revenues also jumped by 25 percent to P39.5 billion, driven by higher interest and non-interest incomes.

Gokongwei-led JG Summit Holdings earlier reported a threefold increase in its income to P12.6 billion for the same quarter, attributed to the merger between its banking arm, Robinsons Bank Corporation, and BPI, which took effect in January.

As for Ayala’s property business, ALI saw its net income rise to P6.3 billion, up by 39 percent, driven by stronger demand for its residential properties, as well as its commercial and industrial segments. Contributing to the surge in reservation sales, which reached P33.3 billion, were AyalaLand Premier’s Park Villas in Makati; Alveo’s Park East Place in Bonifacio Global City, Taguig; and The Courtyards Phase 3 in Vermosa, Cavite. Leasing and hospitality revenues also increased by eight percent to P10.9 billion, with improvements in mall, office, and hotel occupancies.

ACEN, likewise, performed well in the first quarter, with a net income of P2.7 billion, marking a 34 percent year-on-year increase. This growth follows the ramping up of the energy platform’s new operating capacity.

Total renewable attributable output climbed by 49 percent to 1,580 gigawatt-hours, while statutory revenues went up by eight percent to P9.9 billion.

Meanwhile, the net income of Globe Telecom, Inc. fell by seven percent to P6.8 billion, even with the telecommunications giant posting slightly higher revenues from January to March. The dip was brought about by higher depreciation expenses and non-operating charges, according to Globe. 

Ayala’s AC Industrials was able to cut its losses to P931 million in the first quarter from P980 million last year. But it was the opposite for manufacturing arm Integrated Micro-Electronics, which saw its net loss widening to $3.7 million.