Ayala Corporation Posts Core Profit of P11 Billion in Q1 2025

Ayala Corporation’s core net income, which excludes one-off items, declined four percent to P11.3 billion as healthy contributions from BPI and Ayala Land cushioned lower earnings from Globe and AC Energy & Infrastructure Corporation (ACEIC). Including one-off items, Ayala’s net income decreased four percent to P12.6 billion. 

BPI’s net income grew nine percent to P16.6 billion as loan growth and net interest margin (“NIM”) continued to expand. Return on equity was at 15.4 percent. 

Ayala Land’s net income increased 10 percent to P6.9 billion driven by increased revenues from its property development, leasing and hospitality segments.

Globe’s core net income, which excludes non-recurring charges, foreign exchange and mark-to-market charges, decreased 22 percent to P4.5 billion due to softer gross service revenues, higher financing costs, and higher depreciation expenses. Net income rose three percent to P7 billion due to higher equity earnings from affiliates and a P2.2 billion dilution gain from Globe’s ownership in Mynt. 

ACEN's reported net income declined 28 percent to P2 billion due to lower PH generation, weaker local spot market prices, and depreciation expenses from newly operationalized plants. 

ACEIC, the parent company of ACEN, recorded a core net income of P1.7 billion, 46 percent lower owing to lower contributions from ACEN, higher depreciation and interest expenses, and forex losses. 

“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,” Ayala President and CEO Cezar P. Consing said.

Banking

BPI reported a net income of P16.6 billion, up nine percent in the first quarter of 2025 driven by strong revenue growth which offset higher OPEX and provisions. Return on equity remained robust at 15.4 percent. 

Total revenues grew 13 percent to P44.7 billion, marking a new record quarterly revenue. The outperformance can be attributed to higher net interest income from strong loan growth and higher NIM.

Total loans increased 13 percent to P2.3 trillion as both institutional and non-institutional segments expanded. The non-institutional segment contributed 54 percent of total loan growth.
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• Institutional loans were up eight percent to P1.6 trillion.
• Non-institutional loans jumped 28 percent to P664 billion as all segments exhibited robust expansion.
• Of the total loan mix, non-institutional loans accounted for 29 percent, 326 basis points higher from last year. 

NIM expanded 30 basis points to 4.49 percent, the highest in the past five quarters despite the reduction in policy rates.

Fee income was up 16 percent to P9.3 billion, backed by a larger customer base and higher volume, including a jump in digital transaction count. 

Total deposits increased six percent to P2.6 trillion mainly from the growth in time deposits.  

Asset quality remained healthy with adequate cover despite the rise in NPL ratio as a result of BPI’s deliberate efforts to expand its non-institutional loan portfolio.
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• NPL ratio increased 14 basis points to 2.26 percent.
• NPL cover went down 36 percentage points to 100.1 percent.
• Total provisions amounted to P3 billion, double from last year. 

Operating expenses grew 13 percent to P20.3 billion on higher manpower, technology, and volume-related expenses. Cost-to-income ratio improved 16 basis points to 45 percent on solid revenue growth.

Real Estate 

Ayala Land’s net income was up 10 percent to P6.9 billion in the first quarter of 2025 as resilient property development bookings and healthy leasing and hospitality operations boosted revenues six percent to P43.6 billion.

Property development revenues grew 11 percent to P27.8 billion. 

• Residential revenues increased three percent to P22 billion, anchored by the resilience of the premium segment.
• Commercial and industrial lots revenues more than doubled to P5.7 billion led by lot sales at Arca South.  

Property Development sales reservation rose four percent to P36.2 billion led by premium residential sales which rose four percent to P20.7 billion and higher commercial and industrial lots take-up, which more than tripled to P4.9 billion.

• Residential sales were down six percent to P31.2 billion despite premium residential sales growth as take-up from the core segment contracted due to challenging market conditions. Sequentially, residential sales improved 17 percent quarter-on-quarter from higher take-up from both the premium and core segments.

Four projects were launched in the first quarter totaling P12.6 billion, of which 90 percent were in the premium segment. All launches were horizontal projects located outside Metro Manila.

• Notable developments include AyalaLand Premier’s Virendo in Toril, Davao and a sequel phase of Ayala Westgrove Heights in Cavite. 

Leasing and hospitality revenues grew seven percent to P11.6 billion on stable occupancy, lease escalation, and higher room rates. 

• Despite ongoing renovation of its flagship malls, shopping center revenues increased four percent to P5.7 billion on the back of growing contributions from its core and emerging malls.
• Office revenues grew four percent to P2.9 billion with lease escalation and sustained better-than-industry occupancy levels.
• Hotels and resorts revenues expanded 10 percent to P2.6 billion on improved occupancy and higher room rates in spite of the closure of some hotels undergoing renovation.
• Industrial real estate revenues grew 60 percent to P357 million driven by AREIT’s industrial land and newly opened cold storage facilities. 

Revenues from the service business, comprised of construction and property management among others, declined 24 percent to P3.2 billion mainly due to the absence of airline revenues following Ayala Land’s sale of AirSWIFT. 

Capital expenditures amounted to P20.6 billion. The company spent 46 percent towards the completion of residential projects, 30 percent on estate development, 16 percent for leasing and hospitality assets, and nine percent for land acquisition commitments. 

Power

ACEN’s net income declined 28 percent to P2 billion in the first quarter of 2025 because of lower generation due to offline Philippine wind turbines caused by typhoons in 4Q24, softer local electricity spot market prices, and depreciation expenses from newly operationalized plants. 

Core attributable EBITDA, which includes ACEN’s share of EBITDA from non-consolidated operating projects, went up seven percent to P5.6 billion driven by better performance from international plants which more than offset the reduced contribution from Philippine assets. 

Total attributable renewables output rose three percent to 1,680 gigawatt-hours (GWh).

• Output from Philippine renewable plants fell 14 percent to 489 GWh as majority of wind turbines at Pagudpud Wind and Capa Wind in Ilocos Norte undergo repair.
• Output from international renewable plants grew 13 percent to 1,191 GWh driven by strong wind and solar resources from all markets, supported by new capacity added in 2024. 

ACEN currently has 6,978 megawatts (MW) of attributable capacity, comprised of 3.6 GW in operation, 2.6 GW under construction, and 823 MW of committed projects. This year, ACEN will continue to focus on operationalizing over 800 MW across its portfolio, bringing plants under construction online and advancing its pipeline of projects under development. 

Telco

Globe’s core net income, which excludes non-recurring charges, foreign exchange, and mark to-market charges, declined 22 percent to P4.5 billion in the first three months of 2025. The decline was on the back of lower gross service revenues, higher financing costs, and higher depreciation expenses.
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• Net income increased three percent to P7 billion driven by higher equity earnings from affiliates and a P2.2 billion dilution gain in Mynt. 

Gross service revenues dipped three percent to P39.9 billion due to lower home broadband and corporate data, and flat mobile data revenues.

• Mobile data revenues were up one percent to P24.1 billion despite a five percent dip in mobile data traffic owing to increased monetization of mobile services.
• Home broadband revenues decreased five percent to P5.8 billion as customers continued to migrate from fixed wireless to fiber. Globe’s efforts to accelerate fiber adoption led to its GFiber Prepaid subscriber base to expand by 53 percent quarter-on quarter. Total subscriber count reached 400,000.
• The corporate data business dipped two percent to P4.9 billion mainly attributable to the slowdown in core data services despite the sustained momentum in ICT related services.
• Non-telco revenues were nearly unchanged at P568 million as strong earnings from Asticom and Yondu offset the decline in AdSpark.

EBITDA decreased three percent to P20.8 billion owing to lower revenues but prudent cost management resulted in an EBITDA margin of 52.1 percent, above its full-year guidance of 50 percent. 

• OPEX including subsidies declined four percent to P19.1 billion.

Equity earnings from Mynt soared 86 percent to P1.8 billion, fueled by the expansion of its user base and profitability. Contributions from Mynt accounted for 22 percent of Globe’s pre-tax net income, up from 11 percent last year. 
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• Total loan disbursements life-to-date surged 87 percent with unique borrowers accelerating 93 percent.
• Insurance policies sold life-to-date jumped 123 percent, with GInsure users increasing 131 percent. 

Capital expenditures declined 38 percent to P8.5 billion, aligned with Globe’s strategy of optimizing capital allocation while maintaining strong network investments. This resulted in a 12-percentage point decrease in its CAPEX-to-revenue ratio, which ended at 21 percent.

Portfolio Updates

AC Health narrowed net losses to P59 million from P191 million driven by better utilization of facilities and improved margins through prudent cost management, supported by the absence of KMD losses. EBITDA likewise jumped three times to P265 million from P92 million. The improved performance was anchored by stronger results from the provider group, which more than offset softness in the pharma segment. Revenues from the provider group were up 62 percent, driven by enhanced doctor engagement, increased usage of facilities, and opening of more functional beds. Revenues were further supported by higher contributions from FEU-NRMF and the Cancer Hospital. Meanwhile, revenues from the pharma group declined five percent mainly due to industry headwinds and delays in shipments. 

AC Logistics’ core net loss narrowed to P303 million from P400 million on the back of cost savings and margin uplift from the closures of Entrego and the last mile arm of AIR21. Similarly, attributable EBIT losses narrowed to P153 million from P229 million as rationalization initiatives reduced OPEX by P500 million. GMAC Davao, an upcoming cold storage facility, reached 12 percent completion and is on track to open by January 2026. This will add 10,000 pallet positions to the Davao Facility into AC Logistics’ fulfillment network of nodes. 

AC Industrials saw its core net loss narrow to P115 million from P331 million. IMI’s continued turnaround and reduced stake in Merlin Solar more than offset wider losses in ACMobility. Including one-offs, reported net loss narrowed to P294 million from P932 million. 

• IMI reported a net income of US$3.3 million, a turnaround from the US$3.7 million net loss last year. Despite lower revenues, EBITDA more than doubled to US$16.1 million from US$7 million on the back of improved margins and cost savings from the restructuring activities.
• ACMobility posted a net loss of P168 million from P35 million due to marketing and manpower expenses, mainly related to the ramp-up of BYD and its charging infrastructure network. Total unit sales more than doubled to 9,206, bringing total market share from 3.7 percent to 7.4 percent. Meanwhile, its new energy vehicles market share expanded from 59 percent to 90 percent. ACMobility has 170 electrified charging points out of 226 installed. EV users can access the charging points in 72 locations nationwide, with 16 more locations to be electrified.

Balance Sheet Highlights (1Q25 vs FY24)

• Ayala's balance sheet remains resilient with good access to credit from local and international banks, multilaterals, and capital markets.
• Consolidated cash stood at P75.9 billion.
• Consolidated net debt increased two percent to P603.5 billion.
• Consolidated net debt-to-equity ratio was up one basis point to 0.82x, well within the Company’s covenant of 3.0x.
• Parent level cash increased 22 percent to P14.1 billion. 
• Parent net debt was up one percent to P168.3 billion.
• Loan-to-value ratio, the ratio of its parent net debt (excluding the fixed-for-life perpetuals which have no maturity) to the total value of its assets, increased 70 basis points to 14.6 percent.
• Parent net debt-to-equity ratio was at 1.06x.
• Parent average cost of debt slightly increased to 5.34 percent from 5.33 percent in 2024.