Power, banking buoy AEV earnings
Conglomerate Aboitiz Equity Ventures Inc. (AEV) nearly doubled its first-quarter consolidated net income to P6.3 billion, driven by strong contributions from its energy and banking businesses.
The figure marked a 96.9-percent jump from the P3.2-billion bottom line in the same period last year, even as the latest results included P43 million in nonrecurring items.
In a disclosure on Wednesday, AEV said power remained the main earnings driver, accounting for 56 percent.
Aboitiz Power Corp. delivered robust results. Its core net income climbed 61 percent to P7.6 billion, while reported net income reached P7.9 billion after accounting for foreign exchange movements and other items.
It posted P20.3 billion in earnings before interest, taxes, depreciation and amortization, up 35 percent, supported by higher margins, increased contracted capacity and new solar plants.
The banking unit also provided a strong boost. Union Bank of the Philippines posted a 167-percent surge in net income to P3.8 billion, backed by sustained loan growth and lower funding costs.
Net revenues of the bank rose 12 percent to P21.7 billion, while net interest income increased 9 percent to P16.8 billion, translating to a 7 percent net interest margin.
Consumer lending remained a key driver, accounting for 60 percent of the loan portfolio, with strong growth in unsecured products and institutional lending.
The food and beverage segment contributed P2.1 billion in net income, up 43 percent. It was driven by strong volumes and margins across agribusiness and beverage operations.
Infrastructure posted a turnaround, contributing P30 million in income, helped by higher airport traffic, digital infrastructure expansion and increased water volumes.
However, the real estate business remained in the red, posting a P48-million net loss due to weaker contribution from economic estates.
As of end-March, AEV’s total assets stood at P1 trillion, while cash holdings rose 16 percent to P102 billion, reflecting a stable financial position.
