Business

Ayala Corp. profit tumbles as lockdowns take heavy toll

The coronavirus pandemic took a big bite out of the first half earnings of Ayala Corp.

In a statement issued yesterday, Ayala said its net income plunged 79% to P7.9 billion as most of its businesses suffered severely during the strict lockdown period.

Revenue fell 30.1% to P100.31 billion.

The conglomerate also suffered other charges of P10.4 billion from other income of P16.5 billion.

The conglomerate’s banking arm, Bank of the Philippine Islands reported a 15% drop in profit as it beefed up reserves to P15 billion in response to the challenges ahead.

Property unit Ayala Land saw a 70% decline in earnings to ₱4.5 billion owing to lower project bookings, suspended construction activity, restricted mall operations, and theclosure of resorts.

Globe Telecom’s net income fell 5% to P11.5 billion due to higher depreciation expenses from continued network investments.

“While the health crisis has stifled the momentum of some of our businesses, we have started to see positive trends in the operations of BPI, Globe, and Ayala Land since the easing of quarantine restrictions in June”, said Ayala president and COO Fernando Zobel de Ayala said.

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