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“The impending slowdown in global economic growth coupled with inflation pressures on basic goods in recent months have had a dampening effect on consumer spending. This, to some extend, has impacted topline growth of some of our key business.” This is the statement of the Ayala Corporation President Fernando Zobel de Ayala as he explains the reason for the sudden drop of Ayala Corporation’s profit to P. 7.8 billion in the first nine months of the year.

The 43% drop in the Ayala Corporation’s net profit from September was caused by the effects of the global financial crisis and the decline in capital earnings and as well as the decline in capital gains.

More so, Bank of the Philippine Islands, the corporation’s banking unit of and as well as its electronic subsidiary, Integrated Microelectronics Incorporated reported a net loss of P. 5.3 billion and P. 373 million respectively.

Although BPI’s income shrank by 30% exclusive of securities trading gains, its Net loans made a double digit 21% growth. Integrated Microelectronics Incorporated, fortunately, is consistently experiencing a 15% year-on-year growth despite of the net loss it incurred in the second quarter of 2008.
Fernando Zobel de Ayala told the press that in spite of the experiencing effect of financial crisis in their corporation, the current loss cannot be considered to be a threat to their corporation. According to him, the corporation’s financial position is still in good terms. In fact, some of Ayala Corporation’s subordinates remains intact and strong, like the Ayala Land Incorporate who reported a 37% jump in revenues that amounted to P. 3.7 billion and the corporation’s water business, Manila Water Company who reported a 13% hike in net earnings that amounted to P. 125 million.