Ayala Corp., the country's oldest conglomerate, ended the first three months of the year with a net profit of P2.16 billion, down 18 percent from the P2.62 billion it recorded in the same months last year, it said in a statement on Thursday.

The diversified conglomerate said, however, that its net profit during the first quarter was "the highest recorded in the past four quarters, excluding capital gains."

Consolidated revenues, on the other hand, fell to P18.03 billion from P18.76 billion last year due to lower interest income and other income.

Ayala Corp. said its core business units, Globe Telecom and Bank of the Philippine Islands (BPI), posted double-digit growths in earnings, driving the entire group's financial performance in January to March.

Equity earnings from these subsidiaries rose 7 percent and 86 percent, respectively, a reversal of the 35 percent and 55 percent decline in the fourth quarter of 2008 and three consecutive quarters of contraction. Those from real estate unit Ayala Land Inc., however, declined by 51 percent due to the absence of one-time gains and slower demand, particularly in its residential business.

"We are pleased to see some degree of resiliency in domestic demand despite the slowdown in the global economy. This continues to drive the growth of our core business units," said Ayala Corp. president and chief operating officer Fernando Zobel de Ayala.

"However, consumer confidence continues to be tempered relative to pre-crisis levels, but we expect this to eventually turn as macro economic conditions stabilize moving forward," he added.

Globe's net income went up 17 percent to P4 billion, boosted by P398 million in extraordinary gains, while BPI's strong lending and trading businesses lifted its first-quarter profit by 86 percent to P2.9 billion.

Ayala Land, meanwhile, posted a net income of P907 million, down 21 percent year-on-year as low residential sales offset strong revenues from its shopping centers and office buildings.

In the portfolio of companies under AC Capital, Manila Water continued to deliver double-digit earnings growth while the electronics manufacturing and business process outsourcing (BPO) units recorded lower earnings due to slowing demand.

Manila Water's net profit climbed 14 percent to P622 million as revenues went up 6 percent on stable cumulative water sales and tariff adjustments.

Integrated Microelectronics Inc., on the other hand, saw a 26 percent contraction in sales as world demand for electronics products softened.

Ayala Corp.'s BPO companies generated $82 million in revenues, 3 percent lower than last year, with operating income excluding depreciation and amortization flat year-on-year at $7 million.