Ayala Corporation records P24 billion core net income in H1 2025

Ayala Corporation’s (“Ayala” or “the Company”) core net income, which excludes one-off items, dipped 2 percent year-on-year to P23.7 billion, an improvement from the 4 percent decline in the first quarter of 2025. This was a result of higher contributions from BPI, Ayala Land, and the Company’s portfolio businesses partly offsetting softer earnings from Globe and AC Energy & Infrastructure Corporation (“ACEIC”).

​▪ BPI’s net income grew 8 percent to P33.0 billion on the back of strong loan growth and continued net interest margin (“NIM”) expansion. Return on Equity was at 14.9 percent.
▪ Ayala Land’s net income increased 8 percent to P14.2 billion on steady property development revenues and healthy results of its leasing and hospitality business.
▪ Globe’s core net income, which excludes non-recurring items such as accounting gains from the Mynt transaction, towers sale and leaseback, and foreign exchange and mark to-market adjustments, decreased 11 percent to P10.4 billion due to lower gross service revenues (“GSR”), and higher depreciation and interest expenses.
▪ ACEN's core net income declined 24 percent to P3.5 billion due to lower revenues principally from the damaged Philippine wind farms in Ilocos Norte, depressed local spot market prices, weaker irradiance in the Philippines and Australia, as well as depreciation expenses from newly operationalized plants.
 
- ACEIC, the parent company of ACEN, recorded a core net income of P4.1 billion, 39 percent lower because of reduced contributions from ACEN and thermal plants, lower parent net interest income, and forex losses.
 
▪ Including one-off items, Ayala’s net income increased 5 percent to P23.4 billion as impairments incurred in the same period of last year were higher.
▪ Meanwhile, Ayala recorded a core net income of P12.4 billion in the second quarter, a sequential improvement of 9 percent, on the back of higher earnings from ACEIC, ACMobility, and Globe.

“While our telco and energy businesses have some catching up to do, our full year targets remain achievable. We are also encouraged to see our portfolio businesses showing better numbers. The recently announced investment in AC Health by Singapore’s ABC Impact demonstrates our ability to bring in strategic partners to help scale our businesses.,” Ayala President and CEO Cezar P. Consing said.

Banking

▪ BPI reported a net income of P33.0 billion, up 8 percent in the first half of 2025 driven by strong revenue growth which offset higher OPEX and provisions. Profitability remained strong with
Return on Equity at 14.9 percent. 
▪ Total revenues grew 14 percent to P92.6 billion as higher net interest income from robust loan growth and continued NIM expansion was supported by increased non-interest income.
 
- Total loans increased 14 percent to P2.4 trillion, driven by growth in institutional and non institutional segments, which contributed 51 percent of total loan growth. 
- Institutional loans rose 9 percent to P1.7 trillion.
- Non-institutional loans jumped 27 percent to P705 billion as all categories showed robust growth. Non-institutional loans accounted for 30 percent of total loans, 301 basis points higher from last year.
- Year-to-date NIM expanded 32 basis points from last year to 4.58 percent despite
reductions in policy rates.
- Fee income was up 9 percent to P18.5 billion, backed by strong contributions from the Bank’s core businesses led by credit cards, insurance, and wealth management.
 
▪ Total deposits increased 7 percent to P2.6 trillion mainly from the growth in time deposits. 
▪ Asset quality remained healthy with adequate cover despite the expected increase in the NPL
ratio because of BPI’s deliberate efforts to expand its non-institutional loan portfolio.
 
- NPL ratio increased 5 basis points to 2.25 percent due to the shift in loan mix towards the non-institutional segment. 
- NPL cover went down 31 percentage points to 97.05 percent.
- Total provisions amounted to P7.3 billion, up 142 percent from last year.
 
▪ Operating expenses grew 12 percent to P42.7 billion on higher manpower, technology, and volume-related expenses. Cost-to-income ratio improved 96 basis points to 46.2 percent on solid revenue growth.
 
Real Estate

▪ Ayala Land’s net income rose 8 percent to P14.2 billion in the first semester of 2025, anchored by its diversified portfolio across property development, leasing, and hospitality. Revenues declined 1 percent, reaching P83.1 billion, despite mall reinvention works and lower service revenues. 
▪ Property development revenues were up 1 percent to P52.3 billion.
 
- Residential revenues dipped 5 percent to P41.3 billion as higher bookings from the premium segment were offset by lower bookings from the core segment. 
- Commercial and industrial lots revenues jumped 42 percent to P9.1 billion on the back of robust sales at Arca South, Circuit Makati, and Arillo.
- Office for sale revenues grew 5 percent to P1.9 billion as new bookings reversed the revenue decline in the previous quarter.
 
▪ Property Development sales reservations recorded a 3 percent decline to P73.7 billion as higher commercial and industrial lots take-up was offset by lower contribution from the core segment. However, for the second quarter, sales reservations rose 4 percent quarter-on-quarter to P37.5 billion, led by growth in the core segment.

- Residential sales reservations decelerated 4 percent from the same period last year to P65.7 billion but recorded a notable sequential quarter-on-quarter improvement of 10 percent, driven by the strong performance of the core segment. In the second quarter alone, the core segment generated sales of P14.6 billion, up 11 percent year-on-year and 39 percent versus the first quarter.

▪ Five residential projects worth a total of P40.5 billion were launched in the first half of the year, largely in the premium segment, headlined by AyalaLand Premiere’s Laurean Residences in June.
▪ Leasing and hospitality revenues grew 5 percent to P23.2 billion, a record in the first half even with on-going reinvention works.

- Shopping center revenues increased 5 percent to P11.6 billion on the back of growing contributions from new and core malls.
- Office leasing revenues likewise grew 5 percent to P5.9 billion, anchored by single-digit vacancy and lease escalation.
- Hotels and resorts revenues were down 1 percent to P4.9 billion despite 20 percent of its rooms undergoing renovation works.
- Industrial real estate revenues jumped 60 percent to P762 million, driven by industrial land portfolio sales and newly opened cold storage facilities.

▪ Revenues from the service business, comprised of construction and property management among others, declined 31 percent to P5.9 billion mainly from the completion of the construction business’ external projects and lower service revenues due to absence of revenues from AirSWIFT, which was previously sold.
▪ Capital expenditures reached P40.2 billion. The company spent 42 percent towards the completion of residential projects, 25 percent on the build out of leasing and hospitality assets, 23 percent on estate development, and 10 percent on land acquisition commitments.

Telco

▪ Globe’s core net income, which excludes non-recurring items such as accounting gains from the Mynt transaction, towers sale and leaseback, and foreign exchange and mark-to-market charges, dropped 11 percent to P10.4 billion in the first half of 2025. The decline was on the back of lower GSR and higher depreciation and interest expenses offsetting lower OPEX and higher equity earnings from Mynt. Notably, core net income sequentially grew 30 percent in the second quarter to P5.9 billion driven by higher GSR, lower operating expenses and depreciation, and higher contributions from Mynt.

- Net income was down 14 percent to P12.4 billion as higher equity earnings from affiliates and a dilution gain in Mynt were offset by higher depreciation, interest expense, and non operating charges.

▪ GSR dipped 2 percent to P80.2 billion due to lower revenues across telco and non-telco segments. It improved 1 percent quarter-on-quarter to P40.3 billion because of sustained data usage momentum.

- Mobile service revenues declined 2 percent to P57.1 billion due to the continued decline in legacy voice and SMS services. However, second quarter revenues rose 2 percent sequentially to P28.8 billion, signaling a firm rebound.
- Home broadband revenues dropped 3 percent to P11.7 billion owing to the reduced contributions from fixed wireless services as more customers shifted to fiber. Still, second quarter revenues inched up 1 percent to P5.9 billion. Globe’s push for fiber adoption led to a 37 percent quarter-on-quarter increase in its GFiber Prepaid subscriber base, bringing total subscribers to 544,000.
- The corporate data business declined 2 percent to P9.6 billion primarily due to the slowdown in core data services amid cautious business sentiment in the first half, despite continued growth in ICT related services.
- Non-telco revenues decreased 2 percent to P1.2 billion attributable to lower earnings from AdSpark, partly offset by stronger contributions from Asticom.

▪ EBITDA decreased 2 percent to P42.1 billion due to lower revenues. However, prudent cost management resulted in an improved EBITDA margin of 52.6 percent, above full-year guidance of 50 percent.

- OPEX including subsidies declined 3 percent to P38.0 billion.

▪ Equity earnings from Mynt surged 78 percent to P3.8 billion, boosted by a wider user base and improved profitability. Contributions from Mynt accounted for 26 percent of Globe’s pre-tax net income, up from 12 percent last year.

- Total loan disbursements life-to-date soared 85 percent with unique borrowers accelerating 77 percent.
- Insurance policies sold life-to-date jumped 124 percent, with GInsure users increasing 116 percent.

▪ Capital expenditures decreased 33 percent to P18.9 billion, consistent with Globe’s efforts to improve free cash flow. This resulted in a lower CAPEX-to-revenue ratio of 24 percent from 34 percent, underscoring enhanced capital efficiency and maintaining flexibility for calibrated investments over the remainder of the year.

Power

▪ ACEN's core net income declined 24 percent to P3.5 billion in the first half of 2025 due to weaker irradiance in the Philippines and Australia, damaged wind farms in Ilocos Norte, depressed local spot market prices, and depreciation expenses from newly operationalized plants.

- Including a P2.7 billion impairment for the Lac Hoa and Hoa Dong wind projects in Vietnam, ACEN’s net income declined 88 percent to P763 million. Due to COVID-19 related restrictions, these two projects experienced extended construction delays and have been operating under a provisional tariff since reaching commercial operations in the first quarter of 2024. In June 2025, the project companies reached an agreement with Vietnam Electricity (“EVN”) on a final, permanent tariff which is lower than the project’s original investment case, and applied retroactively. ACEN has accordingly provided for these new financial inputs.
▪ Core attributable EBITDA, which includes ACEN’s share of EBITDA from non-consolidated operating projects, was down 1 percent to P10.5 billion.
▪ Total attributable renewables output increased 9 percent to 3,228 gigawatt-hours (GWh) as increased contributions from international assets made up for lower output locally.

- Output from Philippine renewable plants declined 9 percent to 928 GWh due to weaker solar resources and ongoing wind turbines repairs of Pagudpud Wind and Capa Wind in Ilocos Norte.
- Output from international renewable plants rose 19 percent to 2,300 GWh from the commissioning of Stubbo Solar in Australia which more than offset the lower irradiance in the country.

▪ ACEN currently has 7,053 megawatts (MW) of attributable capacity, comprised of 3.6 GW in operation, 520 MW under commissioning, 2.4 GW under construction, and 514 MW of committed projects.

Portfolio Updates

▪ AC Health narrowed core net losses year-on-year from P327 million to P100 million in the first as stronger results from the provider group more than offset muted results from the pharma segment. Meanwhile, EBITDA more than doubled to P586 million from P240 million.

- Revenues from the provider group grew 56 percent, underpinned by increased average spend per patient, stronger doctor engagement, and higher bed utilization rates. Revenue growth was supported by contributions from FEU-NRMF and the Cancer Hospital. 
- The pharma group’s revenues were relatively flat, up 2 percent, due to delays in shipments. 
- On August 8, 2025, AC Health and ABC Impact signed an Investment Agreement in which ABC Impact will subscribe to common and redeemable preferred shares of AC Health for a ~16 percent economic stake. The fresh capital will support AC Health’s expansion across hospitals, clinics, and pharmacies.  ABC Impact is backed by Temasek Trust. ABC Impact will provide regional insights and networks that will allow AC Health to adopt healthcare regional best practices.

▪ ACMobility’s net income jumped from P24 million to P122 million, mainly driven by higher dividends from Isuzu in 2025, equity earnings from Honda, and the sustained positive contribution of BYD, given its growing market penetration. These more than offset higher marketing spend, interest expenses from Kia, and the ramp-up costs from its EV charging infrastructure.

- Total unit sales more than doubled to 20,020 from 9,178, anchored by strong take-up for the BYD Sealion 6-DMi, BYD Seal 5-DMi, and Kia Sonet, which were launched in the second half of 2024. This brought ACMobility’s total market share in the first half of 2025 to 8 percent from 3.9 percent in the same period last year. Meanwhile, its new energy vehicles market share improved by 17 points to 80.3 percent from 62.9 percent.
- ACMobility has 239 electrified charging points out of a total of 257 installed. EV users can  access the charging points in 103 locations nationwide.

▪ IMI posted a net income of US$7.6 million, a turnaround from the US$8.8 million net loss in the same period last year, as greater operational efficiencies supported profitability. Despite lower revenues, EBITDA more than doubled to US$32.3 million from US$12.1 million on the back of improved margins and cost savings.
▪ AC Logistics’ net loss narrowed to P631 million from P773 million, largely driven by the closure of its last mile business and ongoing rationalization efforts. Similarly, EBIT losses narrowed to P283 million from P300 million as cost reductions of P580 million offset the decline in revenue. The business recently opened a 27,000 square meter indoor storage and 6,800 square meter open yard multi-user facility in Carmona, adding an important node into its fulfillment network. AC Logistics is also on track to complete its Davao Cold Storage Facility by January 2026. This will add another 11,000 pallet position to its cold chain logistics network.

Balance Sheet Highlights (1H25 vs FY24)

▪ Ayala maintains a well-capitalized balance sheet, supported by solid access to funding from local and international banks, multilaterals, and capital markets. 
▪ Consolidated cash stood at P91.3 billion. Consolidated net debt increased 2 percent to P602.5 billion. 
▪ Consolidated net debt-to-equity ratio went down 2 basis points to 0.79x, well within the Company’s covenant of 3.0x.
▪ Parent level cash more than doubled to P30.5 billion, inclusive of proceeds from the Preferred issuance of P20 billion.
▪ Parent net debt decreased 11 percent to P148.5 billion. Parent average cost of debt was at 5.42 percent.
▪ 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, decreased 170 basis points to 12 percent. 
▪ On July 31, 2025, Mitsubishi Corporation (“MC”) subscribed to 50 percent interest in AC Ventures Holding Corp.(“ACV”), which owns ~13 percent of Mynt, the operator of GCash, for a total price of approximately P19 billion. Ayala, ACV, and MC signed the shareholders’ agreement. As a result, Ayala will book a ~P10.1 billion remeasurement gain from the transaction in the third quarter.