Ayala’s earnings declined by 51% to P17.1b in 2020


Conglomerate Ayala Corp. said Thursday net income dropped 51 percent in 2020 to P17.1 billion from a year ago, as the pandemic affected the operations of core banking and real estate businesses.

Excluding divestment gains from education and power booked in 2019, the impact of the reclassification of Manila Water Company Inc. as asset and significant loan loss provisions for banking unit, core net income softened 16 percent to P26 billion last year.

Real estate unit Ayala Land Inc. registered a 74-percent decline in a net income to P8.7 billion as mobility restrictions impacted on mall revenues and residential sales.

Net profit of Bank of the Philippine Islands also fell 26 percent to P21.4 billion on the back of P28 billion in loan loss provisions it booked in anticipation of an increase in non-performing loans levels. The provision was five times higher than the P5.6 billion it allocated in 2019.

Globe Telecom’s net income contracted 16 percent to P18.6 billion driven by a moderate decline in gross service revenues, higher depreciation expenses from continued network investments and higher non-operating expenses.

Power generating firm AC Energy recorded a net income of P6.2 billion, down from P24.5 billion in 2019, which included gains from the partial divestment of thermal assets.

AC Industrials narrowed its net loss to P1.8 billion in 2020 from P2.4 billion in 2019 on improved results of manufacturing businesses.

Manila Water’s net income decreased 18 percent to P4.5 billion in 2020 because of a one-off recognition for additional estimates for probable losses and lower contributions from domestic subsidiaries.

The conglomerate programmed P196 billion in group capital expenditures for 2021, including P11.5 billion under the parent company to support the emerging businesses in its portfolio.

Ayala Corp. said to partially fund capital spending plan, it would issue up to P6 billion in fixed-rate bonds with an oversubscription option for another P4 billion.

The bonds will be issued from the company’s P30-billion bond shelf registration program to be filed with the Securities and Exchange Commission.

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