MANILA, Philippines - Ayala Corp., the country’s oldest conglomerate, posted a six-percent growth in net income to P10.4 billion in the first half, driven by the improved performance of its telecom, real estate, banking and electronics businesses.
Excluding the previous year’s divestment gains from the sale of Stream Global Services, Ayala’s business process outsourcing unit, the holding firm’s net earnings grew 31 percent.
Ayala Corp. chief finance officer TG Limcaoco said earnings would likely remain strong for the rest of the year.
Paolo Borromeo, head of Ayala’s Corporate Strategy and Development, said the company is pleased with the progress of its power and infrastructure businesses.
He said the conglomerate would start investing beyond power and infrastructure to sustain its growth trajectory.
“We’re also starting to plant the seeds beyond power and infrastructure, mostly in healthcare and education. Right now, it’s what we call pocket size investments,” Borromeo said.
Last month, the conglomerate announced it acquired a 50-percent stake in drugstore chain Generika Group.
In a statement, Ayala said its solid performance in the first half was a result of strong equity earnings contribution from its business units, which reached 13.2 billion, up two percent from a year ago. Without the divestment gains, equity earnings expanded 20 percent year on year.
“Our earnings continue to grow at a strong pace in step with the overall performance of our business units. As demand drivers remain upbeat, and as our investments in power come onstream, we believe this strong growth will continue throughout the year,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
The group’s property unit, through Ayala Land, saw its net income grow by 19 percent to P8.4 billion. During the period, the company launched 21 residential projects including the Ayala Triangle Gardens mixed-use development.
The banking business, through the Bank of the Philippine Islands, registered total revenues of P29 billion, up 12 percent year on year on the back of higher net interest income and non-interest income.