Strong core units drive Ayala Corp’s 42% profit growth in Q1

MANILA, Philippines – Ayala Corp., the country’s oldest conglomerate, ended the first quarter of the year with a net income of P3.5 billion, up 42% from last year, due to double-digit hikes in the earnings of its core businesses.

It said its real estate, banking and water distribution units mainly drove growth, while its other units in electronics and business process outsourcing (BPO) saw significant improvements in earnings. Growth of Ayala’s telecom business was steady.

Property firm Ayala Land Inc. recorded a 31% increase in net income to P2.1 billion on the back of robust take-up of its residential products, and healthy leasing and hotel revenues.

Bank of the Philippine Islands, the country’s third largest lender by assets, grew its earnings by 107% to P5.8 billion on higher loan demand and trading gains.

Earnings of water distributor Manila Water Co. and telecom player Globe Telecom Inc. rose 64% and 6%, respectively.

Meanwhile, Ayala’s international businesses, including chipmaker Integrated Electronics Inc. (IMI) and BPO LiveIt, reported improvements in their performance in the first quarter.

IMI said its expansion in Europe and Mexico, along with reduced expenses, pushed its net income up 128%. LiveIt, on the other hand, booked a 12% rise in revenues to $255 million. – Rappler.com