Ayala Corp profit surges to P12.8-B in 2013


Posted at Mar 11 2014 02:06 PM | Updated as of Mar 11 2014 10:06 PM

MANILA, Philippines - Ayala Corp. on Tuesday reported its 2013 profits surged 22% to P12.8 billion, as its real estate and banking units continued to perform strongly.

In a statement, Ayala Corp. said its core net income rose 28% to P14.8 billion, without the impact of accelerated depreciation from Globe's network transformation initiative.

Ayala said equity earnings jumped 23% to P17.6 billion in 2013, driven by equity earnings from Bank of the Philippine Islands and Ayala Land, as well as improved earnings from its electronics unit IMI and business outsourcing business LiveIt.

"We are encouraged by the strong performance across our business units as they reap the benefits of the aggressive growth strategies they started a few years back. In turn, we have also been able to optimize earnings and value at the parent level as we continued to rebalance our portfolio and adjusted our ownership, particularly in our banking and water units, over the past year,” Ayala Corporation President and Chief Operating Officer Fernando Zobel de Ayala said in a statement.

Zobel expressed confidence that the conglomerate can sustain double-digit earnings growth this year, amid an stable economic environment.

For 2014, the Ayala group is setting aside close to P190 billion in capital expenditures for its real estate, banking, telecommunications and water businesses. Last year, it spent around P120 billion in capital expenditures.

Property unit Ayala Land posted a 30% jump in net income to a record P11.7 billion in 2013, on the back of P81.5 billion in total revenues.

Bank of the Philippine Islands said its net income rose 15% to P18.8 billion, driven by higher interest income on double-digit loan growth.

Globe Telecom reported its core net income increased to P11.6 billion in 2013, as consolidated service revenues increased by 9% to P90.5 billion.

Manila Water's net income grew by 5% to P5.8 billion in 2013, due to higher billed volume in the East Zone and increased contribution from new businesses.

Meanwhile, Ayala's international businesses saw significant improvements despite uncertainty in the global economy.

Electronics unit Integrated Microelectronics, Inc. (IMI) nearly doubled its net income in 2013 to $10.5 million, as it expanded its businesses in Europe and the Philippines.

LiveIt, Ayala’s business process outsourcing unit, continued to improve its net income to $1.7 million, a turnaround from losses it incurred in 2012.

As of the end of 2013, Ayala parent company ended with a gross debt of P70.9 billion and cash of P25.5 billion. Its balance sheet remains solid with parent company net debt to equity ratio at 0.32 and consolidated net debt to equity ratio at 0.98.