SM Investments Corp. (SMIC), the holding firm of the SM Group, posted a consolidated net income of P42.6 billion in the first half, up 6 percent from P40.2 billion a year ago and driven by steady growth across its core segments.
Revenues climbed by 6 percent to P319.2 billion from P301.4 billion previously.
“We continue to see steady growth across our core businesses, supported by favorable macroeconomic conditions in the Philippines,” SM Investments President and CEO Frederic DyBuncio said in a statement on Wednesday.
“Bank lending remains strong, and consumer spending in our malls and retail stores continues to rise,” he added.
“The Philippine economy was steady at 5.4 percent growth in the first quarter, while inflation has eased to its lowest level since 2019, creating a more supportive environment for both corporates and consumers. Despite global trade uncertainties, overall sentiment remains positive, and we share that optimism for the remainder of the year.”
Banking contributed the largest share to SM’s consolidated earnings at 50 percent, followed by property (28 percent), retail (15 percent) and portfolio investments (7 percent).
BDO Unibank Inc. recorded a 3-percent increase in net income to P40.6 billion from P39.4 billion, driven by higher net interest income and customer loans.
China Banking Corp., meanwhile, reported a 14-percent rise in net income to P13.0 billion
In the retail segment, SM Retail’s net income rose 10 percent to P8.4 billion from P7.6 billion year on year as consolidated revenues grew 8 percent to P211.8 billion from P196.3 billion.
In nonfood retail, department store revenues expanded by 11 percent, helped by a shift in the school opening to the second quarter.
Specialty retail revenues increased 5 percent, fueled by spending on back-to-school items, fashion, health and beauty, while revenues from food retail rose 8 percent to P127.1 billion.
Property unit SM Prime Holdings Inc., meanwhile, posted an 11-percent jump in first-half net income to a record P24.5 billion on the back of stronger rental income, real estate sales and ancillary revenues.
In other portfolio investments, SM Investments said Philippine Geothermal Production Co. contributed 35 percent of portfolio income, followed by NEO at 30 percent and 2GO at 16 percent.
As of end-June, SM Investments’ total assets stood at P1.7 trillion, up 2 percent, while the gearing ratio remained conservative at 32-percent net debt to 68-percent equity.
The company’s shares dipped by P2.50, or 0.30 percent, to close at P825.00 each on Wednesday amid a 0.27-percent rise for the benchmark Philippine Stock Exchange index.
