Property, banking boost Ayala Corp. earnings in 2022

MANILA, Philippines — Earnings of conglomerate Ayala Corp. reaped the rewards of a reopened domestic economy in 2022, with its banking and property segments contributing the largest to growth.

In a disclosure sent to the Philippine Stock Exchange on Friday, said its core net income amounted to P27.7 billion in 2022, up 18% year-on-year.

Ayala said its bottom-line included gains from property sales of Bank of the Philippine Islands and Globe Telecom Inc.’s sale of portions of its data center business and its towers, among others.

“If 2022 was marked by revenge spending on the part of consumers, 2023 may well see the resurgence of the economy as a whole,” Cezar Consing, company president and CEO, said.

Broken down, BPI’s net income skyrocketed 66% on-year to P39.6 billion in 2022. This expansion was supported by higher interest and non-interest income, lower provisions, and sale of a property.

Ayala Land also reported gains as its earnings haul rose 52% year-on-year to P18.6 billion on the back of an increase in commercial lot sales and revenue expansion from its commercial leasing and hotels and resorts. 

The conglomerate’s telco segment posted growth as well. Globe saw its net income leapfrog 46% on-year to P34.6 billion on the back of higher revenues from its data service and partial sales of its data center business and tower assets. 

Energy segment posts lower profits

However, Ayala’s energy segment was a mixed bag. AC Energy, ACEN Corp’s parent company, saw its net income sink 50% on-year to P4.6 billion, citing losses from the divestment of two of its coal assets.

ACEN’s earnings before interest, taxes, depreciation and amortization declined 5% on-year to P143 billion in 2022 as its domestic operations suffered from higher electricity spot market prices, among others. 

The conglomerate set aside capital expenditures of P264 billion for 2023. Of that figure, Ayala will spend P19.4 billion to “fund investment opportunities.”

The conglomerate spent P280.3 billion in capex in 2022, 24% higher compared to the preceding year on account of investments by Ayala Land, Globe, and ACEN. 

Shares in Ayala Corp. lost 1.03% to end the week at P624 apiece. — Ramon Royandoyan