MANILA, Philippines — Aboitiz Equity Ventures, Inc. reported a 5 percent dip in consolidated net income to P16 billion in the first nine months of 2011.

In a disclosure to the Philippine Stock Exchange, AEV said its power group continued to account for the lion’s share at 77 percent, followed by the banking and food subsidiaries, which contributed 17 percent and 6 percent, respectively.

In the first nine months of 2011, AEV incurred a non-recurring gain of P523 million (versus last year’s P408 million non-recurring gain).

This was due to a net loss of P28 million as a result of the revaluation of consolidated dollar-denominated loans and placements; a P266 million gain as a power subsidiary got a favorable ruling by the industry regulator involving its ancillary services tariff structure.

A P137 million gain as a power associate company recovered costs relating to its fuel importation in the second quarter; and a P149 million gain from the reversal of an accrued expense relating to a power subsidiary’s Independent Power Producer Administration (IPPA) contract.

Accounting for these one-offs, AEV’s core earnings for the first nine months of 2011 was at P15.5 billion, lower by 6 percent year-on-year.

Aboitiz Power Corporation ended the period in review with an income contribution of P12.4 billion, down from last year’s P14.2 billion. When adjusted for non-recurring items, the power unit recorded a 14 percent drop in its earnings share, from P13.8 billion to P11.9 billion.

The banking group’s income contribution for the period ending September 30, 2011 recorded a 38 percent improvement from P1.9 billion to P2.7 billion.

Union Bank of the Philippines ended the period with an earnings contribution of P2.3 billion, up by 26 percent from last year as total interest income increased with the expansion of average earning assets notwithstanding the decline in average asset yields.

However, net interest income after impairment losses declined by 5 percent to P4.6 billion while non-interest income for the period improved 68 percent to P7.5 billion as the bank continued to take profit in its securities position.

AEV’s non-listed thrift bank, City Savings Bank contributed earnings of P360 million during the period, up by 227 percent due to the increase in AEV’s ownership in CitySavings from 40.6 percent to 99.3 percent.

For the first nine months of 2011, income contribution from AEV’s food SBU, Pilmico Foods Corporation (Pilmico), recorded a 24 percent decline, from P1.2 billion to P937 million as higher input costs weighed down the profitability of the flour and swine segments.