Ayala’s net income climbed 17 percent to P26 billion in 2016

March 13, 2017

Ayala Corp. reported a net income of P26 billion in 2016, 17 percent higher than the previous year, on the back of double-digit growth contributions from its real estate and banking units, boosted by its emerging businesses in power and industrial technologies.

In a statement on Monday, Ayala Corp said earnings were “driven by the robust equity earnings contribution from Ayala business units, which expanded 14 percent from its year-ago level, to P32 billion.

Equity earnings from the Bank of the Philippine Islands and Ayala Land jumped 19 percent and 18 percent, respectively.

Equity earnings from AC Energy soared 27 percent, while equity earnings from AC Industrials grew 51 percent as its automotive business surged nearly fivefold during the year.

“Ayala capped its five-year strategic target in 2016 with net income expanding nearly threefold and a 23 percent compounded annual growth rate since we put the plan in place in 2011. We believe this was achieved through our disciplined execution and a strong domestic environment,” Ayala president and chief operating officer Fernando Zobel de Ayala said.

Ayala Land recorded a net income of P20.9 billion, growing 19 percent from a year ago, boosted by strong improvements in its property development and commercial leasing businesses.

Bank of the Philippine Islands sustained its earnings trajectory throughout the year, with net profits soaring 21 percent from the previous year to ₱22.1 billion. This was largely driven by solid gains from the bank’s core banking, transactional, and bancassurance businesses, boosted by significant securities trading gains.

The bank’s comprehensive income expanded 30 percent to P21.7 billion. Total revenues grew 12 percent to P66.6 billion as net interest income rose 10 percent to P42.4 billion, while non-interest income climbed 17 percent to P24.2 billion.

Globe posted a six percent growth in consolidated service revenues, reaching a new record of P120 billion.

Mobile revenues were steady at P92 billion, as usage continued to shift from core voice and SMS to mobile data. Mobile data is the biggest contributor to Globe’s mobile revenues, accounting for 38 percent of the segment.

Globe’s subscriber base continued to expand with mobile subscribers reaching 63 million, up 12 percent, bolstered by record-level prepaid acquisitions during the year. DMS