Ayala Corporation (Ayala) announced its financial results for the first quarter of 2025, reporting a four percent decrease in core net income to ₱11.3 billion, excluding one-off items. Including these items, the company’s net income also declined by four percent to ₱12.6 billion.
The quarter’s performance reflected robust contributions from key subsidiaries, BPI and Ayala Land, which helped offset lower earnings from Globe Telecom and AC Energy & Infrastructure Corporation (ACEIC).
BPI demonstrated strong growth, with its net income increasing by nine percent to ₱16.6 billion. This was driven by sustained loan growth and an expanding net interest margin (NIM), resulting in a return on equity of 15.4 percent.
Ayala Land also delivered a solid performance, posting a 10 percent increase in net income to ₱6.9 billion. This growth was fueled by increased revenues across its property development, leasing, and hospitality segments.
Conversely, Globe Telecom experienced a 22 percent decrease in its core net income to ₱4.5 billion. This decline was attributed to softer gross service revenues, higher financing costs, and increased depreciation expenses. However, Globe’s reported net income rose by three percent to ₱7.0 billion, benefiting from higher equity earnings from affiliates and a ₱2.2 billion dilution gain from its ownership in Mynt.
ACEN’s reported net income decreased by 28 percent to ₱2.0 billion due to lower generation in the Philippines, weaker local spot market prices, and depreciation expenses associated with newly operationalized plants. ACEIC, ACEN’s parent company, recorded a 46 percent decline in core net income to ₱1.7 billion, primarily due to lower contributions from ACEN, higher depreciation and interest expenses, and foreign exchange losses.
Despite the mixed performance, Ayala remains optimistic about the rest of the year. “We are seeing strong starts from our banking, real estate and fintech businesses. Our telco and energy businesses have some catching up to do. Our smaller, newer companies are turning the corner. We are constructive on the year,” said Ayala President and CEO Cezar P. Consing.
Ayala’s balance sheet remains strong, with good access to credit from local and international banks, multilaterals, and capital markets. The company’s consolidated cash stood at ₱75.9 billion. Consolidated net debt increased by two percent to ₱603.5 billion, while the consolidated net debt-to-equity ratio slightly increased by one basis point to 0.82x, remaining well within the company’s covenant of 3.0x.
At the parent level, cash increased by 22 percent to ₱14.1 billion. Parent net debt was up by one percent to ₱168.3 billion. The loan-to-value ratio increased by 70 basis points to 14.6 percent, and the parent net debt-to-equity ratio stood at 1.06x. The parent average cost of debt slightly increased to 5.34 percent from 5.33 percent in the same period last year.
Ayala Corporation is one of the Philippines’ oldest and largest conglomerates, with interests in real estate, banking, telecommunications, energy, industrial technologies, infrastructure, and healthcare.
