Ayala core earnings drop in H1 on lower real estate contribution

MANILA, Philippines —  Core earnings of conglomerate Ayala Corp. fell by seven percent to P22.1 billion in the first half amid lower contributions from its real estate arm and reduced non-operating income.

Ayala attributed the decline in non-operating income to lower dividend income from Manila Water Co. following the full payment of the first batch of divested preferred shares, as well as its reduced stake in Mynt following Mitsubishi Corp.’s entry into AM 50 Ventures Inc. in 2025.

On a reported basis, Ayala’s net income slipped by two percent to P22.9 billion, reflecting the net impact of one-offs recognized during the period.

Amid market uncertainties, Ayala said it remains well-positioned, with conservative leverage and a strong liquidity position supporting its balance sheet.

“A well-diversified portfolio coupled with good traction from initiatives undertaken over the past few years has produced solid results even in a period of geopolitical and macroeconomic challenges,” Ayala CEO Cezar Consing said.

“Seeing how our portfolio has performed in a challenging environment gives us confidence in the considerable value that can be created in a more benign environment,” he said.

During the first half, BPI’s net income was flat at P32.8 billion as higher operating expenses and increased provisions arising from more conservative macroeconomic projections in its expected credit loss model offset strong revenue growth.

Globe’s core net income, which excludes non-recurring items, foreign exchange and mark-to-market charges, slipped by two percent to P10.2 billion on higher non-operating charges.

Ayala Land, for its part, booked a net income of P11.5 billion during the period, 19 percent lower year-on-year, as the sustained growth of its leasing and hospitality business partially cushioned lower property development revenues.

However, net income of the property giant expanded by 13 percent to P6.1 billion on a sequential basis.

ACEN saw its core net income surge by 21 percent to P4.2 billion, powered by higher generation output and more favorable market conditions, which more than offset higher depreciation and net financing costs.

For Ayala’s emerging businesses, AC Health delivered strong topline growth, with revenues rising by 25 percent to P7.5 billion.

Net loss widened to P167 million from P64 million last year as the business continued to expand, which required higher manpower and marketing costs.