Ayala Corp says H1 profit drops as units hurt by virus

ABS-CBN News

Posted at Aug 13 2020 02:18 PM

Ayala Corporation Chairman Jaime Zobel De Ayala (righ) is joined by Ayala Corporation President and COO Fernando Zobel De Ayala (left) during the Ayala Corporation Annual Stockholders meeting held at the Fairmont Hotel in Makati on April 26, 2019. Jonathan Cellona, ABS-CBN News/File

MANILA - Ayala Corp said Thursday its net income for the first half of 2020 declined due to the impact of the COVID-19 pandemic to its banking, real estate and other businesses. 

Net income for the first 6 months of the year declined 79 percent to P7.9 billion as an effect of BPI's aggressive loan loss provisions in the second quarter, Ayala Land's limited construction activities and the base effect of divestment gains in power and education, Ayala Corp told the stock exchange. 

Its core businesses including Ayala Land, Bank of the Philippine Islands, Globe Telecom and AC Energy also recorded lower net profits in the first semester, the company said.

Ayala Land, BPI, Globe and Manila Water are expected to raise some $3 billion in combined proceeds from various domestic and international capital raising exercises, it said.

Ayala Land on Thursday debuted its real estate investment trust (REITs) AREIT at the Philippine Stock Exchange. 

“Our group has taken advantage of the favorable debt market conditions to further solidify our balance sheet in these challenging times," Ayala Corp chairman and CEO Jaime Augusto Zobel de Ayala said. 

“It is encouraging to see the strength of the Ayala brand translate to its continued ability to attract sizeable capital under the current environment,” Zobel added.

The crisis that has affected many businesses globally has accelerated digital adoption in the country especially in financial services," said Ayala Corp president and COO Fernando Zobel de Ayala.