SY-LED SM Investments Corp. (SMIC) posted a 6% increase in nine-month consolidated net income, driven largely by its banking business.
For the January-to-September period, SMIC’s net income rose to P64.4 billion from P60.9 billion a year earlier, with banking contributing 50% of total earnings, followed by property at 28%, retail at 15%, and portfolio investments at 7%, the company said in a press release on Wednesday.
“The third quarter performance remained within our expectations. Despite the challenges brought about by adverse weather and flooding, we continued to see resilient financial performance across our businesses,” SM Investments Corp. President and Chief Executive Officer Frederic C. DyBuncio said.
“While external factors may temper overall economic growth, we maintain an optimistic outlook as we move into the fourth quarter.”
SMIC’s consolidated revenues for the nine months climbed 4% to P482.3 billion from P462.5 billion in the same period last year. Total assets grew 4% to P1.8 trillion, with a conservative gearing ratio of 31% net debt to 69% equity.
The company’s banking units were key drivers of growth.
BDO Unibank, Inc. earned P63.1 billion in net income, up from P60.6 billion, supported by stable performance in core segments. Net interest income rose 8%, customer loans increased 14% to P3.5 trillion, and deposits grew 10%, with a current account/savings account (CASA) ratio of 67%.
China Banking Corp. posted net income of P20.2 billion, a 10% increase from 2024.
SMIC’s retail arm, SM Retail, Inc., saw nine-month net income decline 4.69% to P12.2 billion from P12.8 billion, even as revenues rose 5% to P318.1 billion.
“The earlier school opening in June this year pushed some spending from the third to the second quarter. Despite this shift, specialty retail spending grew in the health and beauty, fashion and kids categories while essential spending continued to prop up growth for food retail,” Mr. DyBuncio said.
Same-store sales for department store and specialty retail operations rose 3% and 4%, respectively, while department store revenues in fashion and kids segments grew 3% and food retail revenues increased 7%.
Property unit SM Prime Holdings, Inc. posted a 10% increase in nine-month net income to P37.2 billion from P33.9 billion, with revenues up 4% to P103.4 billion. Malls accounted for 59% of revenues, posting 7% growth to P61 billion due to additional tenants and expanded leasable space. SM Prime’s third-quarter net income rose 8% to P12.8 billion from P11.8 billion, lifted by contributions from its mall and hotel and convention center businesses.
Portfolio investments were led by Philippine Geothermal Production Company, Inc., contributing 30% of total portfolio income, followed by NEO Ltd. at 26% and 2GO Group, Inc. at 12%. 2GO’s revenues rose 6% and net income jumped 65%, supported by strong performance in its travel and logistics businesses, SMIC said.
Shares of SMIC closed at P701 apiece on Wednesday, up P1, or 0.14%. — Alexandria Grace C. Magno
