Ayala Corp. turned portfolio revaluation gains into profit momentum as it logged a 36 percent increase in net income to P46.3 billion in the first nine months of the year even as steady banking and property units balanced headwinds from its energy and telecommunications arms.

In a stock exchange report on Thursday, the company said the remeasurement gain was recognized after Japan’s Mitsubishi Corp. subscribed to a 50 percent stake in AC Ventures, effectively acquiring an indirect ownership in Mynt.

Excluding one-off items, core net income was steady at P36.6 billion, as higher contributions from the Bank of the Philippine Islands (BPI) and Ayala Land, Inc. (ALI) offset weaker results from Globe Telecom, Inc. and ACEN Corp. 

Sequentially, core earnings improved 4 percent in the third quarter to P12.8 billion, supported by growth in AC Health, AC Logistics, Integrated Micro-Electronics, and iPeople.

“While (gross domestic product) growth has slowed somewhat, our core businesses remain steady and our portfolio businesses continue to improve. Our recently announced initiatives in retail, Makro and Spinneys, signify continued confidence in the long-term growth trend of the Philippine economy,” Ayala president and CEO Cezar P. Consing said.

Banking arm BPI delivered a 5 percent increase in net income to P50.5 billion, supported by strong loan growth and continued net interest margin expansion. Total revenues grew 13 percent to P142.3 billion on higher net interest income and stronger fee-based earnings, while return on equity stood at 15 percent. Total loans rose 13 percent to P2.4 trillion, driven by sustained demand across all segments, while total deposits expanded 8 percent to P2.7 trillion.

ALI’s net income inched up 1 percent to P21.4 billion, driven by steady property development revenues and healthy performance in leasing and hospitality. Property development revenues reached P75.9 billion, with residential sales improving sequentially. Leasing and hospitality revenues grew 6 percent to P35.1 billion on strong mall, office, and hotel operations.

Meanwhile, Globe’s core net income fell 12 percent to P15.5 billion as lower gross service revenues and higher depreciation and interest expenses weighed on results, partly offset by reduced operating expenses and stronger equity earnings from Mynt.

ACEN’s core net income slid 18 percent to P4.3 billion, reflecting the impact of damaged wind farms in Ilocos Norte, softer local spot prices, and lower solar output in the Philippines and Australia.

Including impairments and other one-offs, ACEN’s net income dropped 78 percent to P1.8 billion. Its parent firm likewise saw its earnings fall 59 percent to P4.2 billion due to weaker power contributions and lower net interest income.

Among Ayala’s emerging businesses, AC Health nearly broke even with a net loss of only P9 million from P417 million a year earlier, buoyed by stronger hospital and clinic revenues and a gain from the sale of KMD shares. 

ACMobility swung to a P18-million profit from a P176-million loss as car sales more than doubled to 31,669 units, while IMI turned around with a $14.8-million net income from a $9.2-million loss last year, supported by improved operational efficiencies.

AC Logistics narrowed its loss to P1.3 billion from P1.5 billion after closing its last-mile business and implementing cost-saving measures.

Through ACX Holdings, Ayala expanded its retail ventures via joint ventures with Makro ROH Co. Ltd. and Dubai-based Al Seer Group, marking its entry into large-format wholesale and premium grocery retail.

As of end-September, consolidated cash stood at P77.4 billion, while consolidated net debt rose 2.7 percent to P606.3 billion.

Ayala also resumed its P20-billion share buyback program in September, repurchasing an additional 4 million shares worth P1.92 billion, bringing total buybacks to P9.8 billion since 2019.