SM Investments Corporation (SMIC) reported today its consolidated net income grew 6% to PHP18.4 billion in the first quarter from PHP17.3 billion in the same period last year.
Consolidated revenues for the January to March period increased 4% to PHP144.0 billion from PHP138.3 billion in the same period last year.
“We continue to benefit from the country’s underlying economic growth and we adapt to reflect consumers’ evolving spending habits and priorities,” said SM Investments President and Chief Executive Officer Frederic C. DyBuncio. “Looking ahead, our outlook remains cautiously optimistic and our expansion is on track.”
Banking accounted for 52% of reported net earnings from core businesses, followed by property at 29%, retail at 12%, and portfolio investments at 7%.
Retail
SM Retail’s net income stood at PHP3.1 billion from PHP3.9 billion in the same period last year. Revenues were up 3% to PHP93.8 billion from PHP91.3 billion.
Revenues for Food retail increased by 6% to PHP57.0 billion.
In Non-Food retail, revenues of the department store business were at PHP 22.4 billion, lower by 4%, and revenues for specialty retail stood at PHP 20.4 billion, lower by 1%, as a result of moderated spending by consumers.
Banking
BDO Unibank, Inc. reported a net income of PHP18.5 billion, up 12% from the same period last year on the sustained performance of its core businesses.
Net interest income increased 13% with gross customer loans up by 13%. Deposits grew 13% supported by low-cost Current Account/ Savings Account (CASA).
Asset quality remained stable with the bank’s continued conservative credit and provisioning policies. Non-performing loans ratio stood at 1.88% while NPL coverage settled at 181%.
China Banking Corporation booked a PHP5.9 billion net income for the first quarter, up 18% from the same period last year, on the robust growth of its core businesses.
Net interest income grew 18% year-on-year to PHP15.0 billion, driven by higher asset yields and loan volume.
Gross loans increased by 11% to PHP805 billion on strong loan demand from businesses and consumers. On the funding side, total deposits expanded by 13% to PHP1.2 trillion.
Non-performing loans ratio was 1.8% while NPL coverage improved to 143%.
Property
SM Prime Holdings, Inc. (SM Prime) reported a consolidated net income of PHP10.5 billion, 11% higher than the PHP9.4 billion in the same period last year. Consolidated revenues grew 7% to PHP30.7 billion from PHP28.6 billion in the same period last year.
The mall business, which accounts for 59% of consolidated revenues, increased 7% to PHP18.2 billion. Mall rental income reached PHP15.8 billion, up 8% from the same period last year. Other revenues, which include cinema and event ticket sales, stood at PHP2.5 billion.
The primary residential business group which accounts for 28% of consolidated revenues reported PHP8.5 billion revenues, 10% higher than the same period last year. Reservation sales were at PHP26.5 billion.
Revenues of other business segments, composed of offices, hotels, and convention centers, grew 9% to PHP3.4 billion.
Portfolio Investments
Portfolio investments’ net income in the first quarter was driven by Atlas Mining and the NEO Group.
SM Investments expects the portfolio businesses to make a larger contribution to the Group’s revenues and earnings over time.
Balance Sheet
The total assets of SM Investments stood at PHP1.6 trillion. The gearing ratio remained conservative with 33% net debt to 67% equity.
About SM Investments Corporation
SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.
SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores, and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.
For more information, please visit www.sminvestments.com
Be part of our vibrant Good News Pilipinas community, celebrating the best of the Philippines and our global Filipino heroes. As winners of the Gold Anvil Award and the Lasallian Scholarum Award, we invite you to engage with us and share your inspiring stories. For stories Making Every Filipino Proud, reach out to GoodNewsPilipinas.com via Facebook, Twitter, Instagram, TikTok, YouTube, and LinkedIn. LinkTree here. Let’s spread good news together!
