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 four percent in the third quarter to P12.8 billion, supported by growth in AC Health, AC Logistics, Integrated Micro-Electronics and iPeople.

‘Core business remains steady’

“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 five percent increase in net income to P50.5 billion, supported by strong loan growth and continued net interest margin expansion. 

Total revenues

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 one 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 six 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.