Good governance seen to boost ALI profit

MANILA, Philippines - Property giant Ayala Land Inc. has embarked on an ambitious program to grow revenues by 20 percent every year and record a net profit of at least P40 billion by 2020, and adhering to the highest corporate governance standards will play a key role in achieving its targets.

According to ALI president and CEO Bernard Vincent Dy, the expanding company continues to recognize the importance of fully integrating corporate governance practices into its growth strategy as these would help ensure the loyalty of its customers and the patronage of the investment and banking communities.

“When you want to grow at the pace that we have set, it becomes imperative for us to strengthen our governance standards and our risk management practices,” said Dy. “Fortunately, the organization is prepared to drive this growth with value systems that are already anchored on the same principles of good governance.”

Dy stressed during the first Governance, Risk Management and Compliance Summit of ALI held recently at the Intercontinental Manila that the strict adoption of corporate governance – simply defined as doing the right things the right way – was already benefiting the company in concrete ways that are reflected on its bottom line.

For example, the property subsidiary of Ayala Corp., the country’s oldest conglomerate, is able to acquire significant land areas for its massive mixed-use property development projects all over the country working with stakeholders who consider ALI a trusted and reliable partner.

“A lot of our equity has always been based on trust,” he said.

The reputation for good corporate governance has also won for ALI the support of the investment and credit communities and has enabled it to expand its various business lines. Its robust performance across its property development, commercial leasing, and services business units, has resulted to a 25 percent jump in the company’s net income of P10.8 billion in the first nine months of 2014.