Zobel-led Ayala Corp. saw its core net income edge lower in the first quarter of 2026 as the downturn in its real estate business tempered gains in banking and telecommunications.

In a disclosure to the Philippine Stock Exchange, the country’s oldest conglomerate reportd reported core net income—which strips out one-off items—of ₱11.2 billion in January to March, a slight decline from the ₱11.3 billion in the same period a year earlier.

The holding firm attributed the nearly flat performance to softer contribution from its property arm, Ayala Land Inc., which was offset by higher earnings from Bank of the Philippine Islands (BPI), Globe Telecom Inc., and AC Energy & Infrastructure (ACEIC).

Including non-recurring items, Ayala’s reported net income fell five percent to ₱12 billion. The company noted that the year-on-year comparison was affected by the high base in 2025, which included a ₱1.7 billion dilution gain following MUFG’s investment in the fintech giant Mynt.

Earnings were further pressured by the reduced stake in Mynt after Mitsubishi Corp. entered AM 50 Ventures Inc. last year, as well as lower dividend income from Manila Water Co.

“Given global macro conditions, our near-term focus is on resiliency through stronger cash generation, prudent cost management, and disciplined capital allocation,” Ayala Chief Executive Officer Cezar P. Consing said in the statement.

He added that the group’s portfolio remains positioned for long-term value creation despite the current market volatility.

At end-March, the conglomerate’s units showed a widening performance gap. BPI, the group’s banking powerhouse, saw net income rise two percent to ₱16.9 billion, driven by robust revenue growth that helped absorb higher operating expenses and loan-loss provisions.

Globe Telecom also reported a nine percent increase in core net income to ₱4.9 billion, supported by service revenue growth and improved equity earnings from affiliates.

In contrast, Ayala Land’s net income tumbled 23 percent to ₱5.4 billion as the property giant struggled with lower contributions from its development business, though this was partially mitigated by growth in its leasing and hospitality segments.

The energy sector, however, provided a bright spot for the parent company. ACEIC reported a 60 percent surge in net income to ₱2.6 billion, buoyed by higher net interest income and foreign exchange gains.

Its listed subsidiary, ACEN Corp., saw reported net income jump 50 percent to ₱2.9 billion, even as its core profit fell due to increased depreciation and financing costs associated with new international plants.

Ayala’s emerging sectors remained in the red but showed signs of operational progress. AC Mobility narrowed its core net loss to ₱109 million as unit sales surged 34 percent to 12,299 vehicles.

The growth was spearheaded by the BYD brand, pushing the group's automotive market share up to 8.5 percent.

AC Health, however, saw its net loss widen to ₱143 million as rising manpower costs outpaced a 24 percent jump in revenues from its expanding hospital and pharmacy networks.

The group maintained a liquid balance sheet to weather market turbulence, ending the quarter with parent-level cash of ₱15.9 billion and access to ₱79.8 billion in credit facilities. (James A. Loyola)