Ayala Corporation announced that its core net income for the first quarter remained stable at ₱11.2 billion. Higher earnings from the Bank of the Philippine Islands (BPI) and Globe Telecom, alongside stronger contributions from AC Energy & Infrastructure (ACEIC), effectively cushioned softer results from Ayala Land (ALI).
Lower aggregate contributions from other business units were primarily driven by a reduced stake in Mynt (following Mitsubishi Corporation’s entry into AM 50 Ventures Inc. in 2025) and lower dividend income from Manila Water Company (MWC).
Accounting for one-off items, Ayala’s reported net income declined 5 percent to ₱12 billion. This was mainly due to a high base effect from the previous year, which included a ₱1.7 billion dilution gain from MUFG’s investment in Mynt.
“Given global macro conditions, our near-term focus is on resiliency through stronger cash generation, prudent cost management, and disciplined capital allocation. Our portfolio is positioned for long-term value creation,” said Ayala CEO Cezar P. Consing.
Bank of the Philippine Islands (BPI) posted a net income of ₱16.9 billion, up 2 percent year-on-year.
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Revenue Expansion: Total revenues climbed 14 percent to ₱50.9 billion, driven by double-digit growth in both net interest and non-interest income. Fee income grew 14 percent to ₱10.5 billion.
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Loan and Deposit Growth: Total loans increased 14 percent to ₱2.6 trillion, boosted by a 26 percent surge in non-institutional loans. Total deposits grew 10 percent to ₱2.8 trillion.
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Margins and Asset Quality: Net interest margin (NIM) expanded by 7 basis points to 4.57 percent. Reflecting a shift toward non-institutional lending, the NPL ratio rose slightly to 2.42 percent, prompting a prudent 83 percent increase in provisions to ₱5.5 billion. Operating expenses rose 16 percent to ₱23.5 billion, resulting in a cost-to-income ratio of 46.2 percent.
Ayala Land, Inc. (ALI) recorded a net income of ₱5.4 billion, a 23 percent decline from the same period last year, as softer property development revenues countered gains in recurring-income segments.
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Property Development: Revenues decelerated 27 percent to ₱20.3 billion, largely due to a lack of new launches during the period and a high base effect from major commercial lot bookings last year. Property development sales reached ₱28.2 billion.
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Leasing and Hospitality: Revenues rose 9 percent to ₱12.6 billion. Shopping centers grew 2 percent (₱5.8 billion), office leasing held steady (₱3 billion), and industrial real estate grew 23 percent (₱439 million).
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Hospitality Surge: Hotels and resorts revenue jumped 30 percent to ₱3.4 billion, lifted by renovated properties and the newly acquired New World Makati hotel.
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Capital Expenditures: Capex totaled ₱23 billion, featuring a significant 53 percent increase in investments targeting leasing and hospitality assets.
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Globe Telecom: Core net income grew 9 percent to ₱4.9 billion, powered by higher gross service revenues and improved equity earnings from affiliates.
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ACEN & ACEIC: ACEN’s reported net income rose 50 percent to ₱2.9 billion, though its core net income fell 27 percent to ₱1.4 billion due to higher depreciation and net financing costs. Its parent company, ACEIC, posted a 60 percent increase in net income to ₱2.6 billion, driven by strong international plant generation, higher net interest income, and forex gains.
Ayala maintains a solid financial cushion to navigate market volatility. Consolidated cash increased to ₱71.9 billion, while parent-level cash stood at ₱15.9 billion. The company’s liquidity is further reinforced by ₱79.8 billion in total available credit facilities.
