SY-LED conglomerate SM Investments Corp. (SMIC) said it expects steady performance across its core businesses in the coming months, citing resilient consumer spending, strong bank lending, and improving macroeconomic indicators.
“We continue to see steady growth across our core businesses, supported by favorable macroeconomic conditions in the Philippines. Bank lending remains strong, and consumer spending in our malls and retail stores continues to rise,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a regulatory filing on Wednesday.
“The Philippine economy was steady at 5.4% 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,” he added.
Mr. DyBuncio said this as SMIC recorded a 6% increase in its consolidated net income for the first half to P42.6 billion from P40.2 billion last year, driven by steady growth across its core segments.
Among its business units, banking accounted for 50% of reported net earnings, followed by property at 28%, retail at 15%, and portfolio investments at 7%.
Consolidated revenue for the first six months rose by 6% to P319.2 billion from P301.4 billion a year ago.
In the retail business, SM Retail grew its net income by 10% to P8.4 billion as revenue increased by 8% to P211.8 billion.
Department store revenue rose by 11%, led by the shift in the school opening to the second quarter.
Specialty retail revenue went up by 5%, driven by spending on stationery or back-to-school items, fashion, and health and beauty categories.
Food retail revenue improved by 8% to P127.1 billion due to store expansion and volume growth.
In the banking segment, BDO Unibank, Inc. posted a 3% growth in net income to P40.6 billion, supported by strong performance in its core businesses.
Net interest income increased by 7% as gross customer loans rose by 14% to P3.4 trillion. Deposits also grew by 8%, breaching P4 trillion.
China Banking Corp. recorded a 14% growth in net income to P13 billion. Net interest income rose by 15% to P34.9 billion on higher asset yields and loan volume.
Gross loans reached P964.7 billion. Deposits increased by 5% to P1.3 trillion, led by 10% growth in checking and savings accounts.
In the property business, SM Prime Holdings, Inc. posted an 11% increase in income to P24.5 billion. Consolidated revenue rose by 5% to P68 billion.
Rental income from malls, offices, hospitality, and MICE (meetings, incentives, conferences, and exhibitions) activities accounted for 60% of total revenue, followed by real estate sales at 29%, and cinema ticket sales, food and beverage, amusement, and related offerings at 11%.
Meanwhile, SMIC said the performance of its portfolio investments was led by Philippine Geothermal Production Co., which contributed 35% of total portfolio income, followed by NEO at 30%, and 2GO Group, Inc. at 16%.
Total assets increased by 2% to P1.7 trillion.
SMIC shares dropped by 0.3%, or P2.50, to P825 per share on Wednesday. — Revin Mikhael D. Ochave
