Ayala Corp. net income down 51% in 2020 due to pandemic

Conglomerate Ayala Corp. sustained a financial beating in 2020 as it booked a more than half drop in its earnings due to the impact of the COVID-19 pandemic on its businesses.

In a disclosure to the Philippine Stock Exchange on Thursday, Ayala Corp. said its reported net income dipped by 51% to P17.1 billion last year.

“Ayala’s businesses recorded lower net profits due to the effects of the pandemic on business operations,” the company said.

Its property arm, Ayala Land, posted a 74% decline in net income to P8.7 as it “endured the severe impact of COVID-19 to its business operations in 2020.”

Ayala Corp. banking unit, Bank of the Philippine Islands, recorded a net income of P21.4 billion, down 26% on the back of P28 billion in loan loss provisions in anticipation of an increase in non-performing loans due to the pandemic.

Globe Telecom, likewise, saw a 16% net income contraction to P18.6 billion “moderate decline in gross service revenues, higher depreciation expenses from its continued network investments, and higher non-operating expenses.”

The conglomerates power generation arm, AC Energy, also reported a net drastic drop in earnings to P6.2 billion from P24.5 billion in 2019.

AC Industrial saw a net loss of P1.8 billion, albeit narrower than the P2.4 billion net loss in the prior year as its Philippine automotive business remained challenged due to the negative effects of the health crisis.

Affiliate Manila Water, on the other hand, posted a net income of P4.5 billion, down 18% year-on-year “due to a one-off recognition for additional estimates for probable losses and lower contributions from domestic subsidiaries due to the impact of COVID-19.”

For 2021, Ayala Corp. programmed approximately P196 billion in group capital expenditures, of which P11.5 billion has been earmarked under the parent to support the emerging businesses in its portfolio. -MDM, GMA News