MANILA, Philippines (UPDATE) - Net income of Ayala Corp., the country's oldest conglomerate, rose 9% in the first half of the year to P4.4 billion, driven by the robust performance of most of its business units.
For the second quarter alone, Ayala's earnings went up 21% to P2.3 billion.
Revenues in the period January to June rose 25% to P44.19 billion from P35.43 billion a year ago. All major businesses such as property, banking, and water distribution contributed to revenue growth.
Ayala's real estate business, through Ayala Land Inc., remained strong as revenues for the 6-month period rose 28% to P18.4 billion on the back of high residential sales. Leasing operations also grew 7%, with malls, offices and hotels all contributing to growth.
Banking was also a major driver in the first half, with unit Bank of the Philippine Islands posting 4% revenue growth, and 5% increase in profits to P5.6 billion.
Businesses under AC Capital, including water distribution, electronics manufacturing, automotive and business process outsourcing, also improved significantly, Ayala said.
"The results in the second quarter reflect a strong rebound from the lows of the recent economic slowdown. Domestic consumption has been robust and benefitted our real estate, banking, and auto businesses," said Ayala president and chief operating officer Fernando Zobel de Ayala.
However, Zobel noted that the conglomerate's operations in telecommunications continue to face "significant competitive challenges." Globe Telecom Inc.'s revenues were down 3% year-on-year in the first 6 months, mainly due to lower mobile revenues.
Nonetheless, Zobel said: "The fundamental drivers of the local economy remain in place which we believe will continue to fuel the growth of our key businesses."