AYALA Corp. is banking on its new business units for sustainability and growth, as its nine-month net income has been supported by its core businesses, according to its president.
“We continue to manage our younger businesses to get them to sustainable trajectories in the near term. We strive to build a simpler, more collaborative, and more connected Ayala,” Ayala Corp. President and Chief Executive Officer (CEO) Cezar P. Consing said in a statement to the stock exchange on Wednesday.
Mr. Consing said this as Ayala Corp. recorded a 5% increase in its nine-month net income to P34 billion.
Core net income rose by 19% to P36.7 billion, led by its core units Bank of the Philippine Islands (BPI), Ayala Land, Inc. (ALI), Globe Telecom, Inc., and AC Energy & Infrastructure Corp.
“Ayala’s growth is being sustained by the strong performances of our core businesses,” Mr. Consing said.
For the banking segment, BPI saw a 24% increase in net income to P48 billion as total revenue surged by 25% to P125.8 billion. Net interest income rose by 22% to P93.9 billion, while noninterest income climbed by 32% to P31.9 billion.
Operating expenses grew 22% to P59.4 billion due to higher manpower, technology, marketing, and volume-related costs.
The property business led by ALI recorded a 15% increase in net income to P21.2 billion on resilient property demand and robust consumer activity. Revenue jumped by 27% to P125.2 billion.
Property development revenues increased by 34% to P76.6 billion on higher bookings across all residential segments, while residential reservation sales increased by 17% to P100.5 billion due to strong demand in the premium segment.
Leasing and hospitality revenues rose by 8% to P33.2 billion, while revenue from service businesses surged by 54% to P12.8 billion.
For the telecommunications segment, Globe recorded a 6% increase in net income to P20.6 billion, while core net income surged by 19% to P17.6 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 7% to P64.9 billion.
The energy segment led by ACEN saw a 24% jump in net income to P8.1 billion, led by newly operational plants that boosted attributable renewable energy. Core attributable EBITDA expanded by 30% to P14.3 billion.
Ayala Healthcare Holdings, Inc. widened its net loss to P417 million due to costs related to the ramp-up of its cancer hospital in Taguig City. Revenue surged by 11% to P6.9 billion.
AC Industrial Technology Holdings, Inc. narrowed its net loss to P5.1 billion on lower impairments. Core net loss widened to P921 million on softer demand in electronics manufacturer Integrated Micro-electronics, Inc.
Meanwhile, ALI listed its follow-on P8 billion ten-year sustainability-linked bond (SL-Bond) on the Philippine Dealing & Exchange Corp., which has an original interest rate of 6.1334% per annum.
The recent listing brings ALI’s total SL-Bond issuance to P14 billion. The bonds are linked to specific sustainability performance targets.
The latest bond issuance is part of the P50-billion securities program rendered effective in June 2023. The proceeds will be used to finance capital expenditure and debt refinancing requirements.
“The success of this sustainability-linked financing program, novel as it may be in the country, shows that the Philippine investing community realizes that sustainable finance is integral to the urgent pursuit of sustainability,” ALI President and CEO Anna Ma. Margarita B. Dy said during the listing ceremony.
The latest issuance brought ALI’s sustainability-linked financing program to P28 billion with an average tenor of nine years.
“We will continue to pursue large, impactful projects that will improve the quality of life of the Filipinos. Among such developments are the One Ayala Integrated Transport Hub and the transit connectivity and pedestrianization of the Makati central business district, of Bonifacio Global City, and Nuvali and our other estate developments,” Ms. Dy said.
ALI tapped BDO Capital & Investment Corp., BPI Capital Corp., Chinabank Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp., and SB Capital Investment Corp. as the joint lead underwriters and bookrunners for the issuance.
On Wednesday, Ayala Corp. shares fell by 0.15% or P1 to P657 per share, while ALI stocks dropped by 0.98% or 30 centavos to P30.25 apiece. — Revin Mikhael D. Ochave