MANILA, Philippines - SM Investments Corp. (SMIC), the investment holding firm of tycoon Henry Sy, posted a 13 percent growth in net income in the first half of the year to P9.64 billion, helped by brisk real estate sales and sustained growth of its banking units.
In a statement, SMIC said it chalked in revenues of P92.94 billion, nine percent higher than the P84.99 billion recorded a year before.
Its banking business, through Banco de Oro Unibank and China Banking Corp., remained as the SM Group’s main income driver, accounting for 31.4 percent of total, followed by retail and shopping malls with 30.4 percent and 23.3 percent, respectively. Real estate operations, on the other hand, contributed 14.9 percent of groupwide earnings.
“SM consistently met its targets during the first six months of this year. This proven capability to deliver in spite of domestic and global challenges is brought about by the positive results regularly turned in by our core businesses. We intend to maintain this healthy level of performance, thus we are committed to challenge ourselves further and to continue seeking opportunities for added growth and expansion,” said Harley T. Sy, president of SMIC.
SMIC chief finance officer Jose T. Sio added that the company is on track to meet its income growth target of 12-14 percent this year from P18.4 billion in 2010. Revenues are seen to rise to at least P200 billion from P179 billion a year earlier.
BDO reported a net income of P5 billion during the period under review, an increase of 20 percent from P4.2 billion the previous year as it continued to leverage on its strong business franchise to post above-industry growth and create a more diversified and sustainable revenue stream. Net interest income increased to P17.1 billion while gross customer loans expanded 24 percent to P610.1 billion.
China Bank, meanwhile, earned P2.35 billion, up 11.4 percent due to improvements in its core operations as well as increased contributions from bancassurance.
Income from the group’s supermarkets business slightly increased to P2.58 billion as sales improved seven percent to P67.69 billion. During the first six months of the year, the retail group opened one department store, two supermarkets, seven SaveMore branches and one hypermarket, bringing the total number of stores to 150. Year-to-date total consists of 41 department stores for the non-food retail group and 109 for the food retail group, of which there were 32 supermarkets, 47 SaveMore branches, 26 hypermarkets and four Makro outlets.
Mall giant SM Prime Holdings Inc. likewise reported a 14 percent rise in net profit to P4.27 billion as revenues climbed 12 percent to P12.71 billion.
By yearend, SM Prime will have 43 malls in the Philippines and four in China, with an estimated gross floor area of 5.2 million square meters in the Philippines and 0.6 million sqm in China.
SM Prime chief finance officer Jeffrey Lim said the company expects to speed up the expansion of malls in China beginning 2014 by putting up two new malls every year.
Earnings of SM Development Corp., jumped 54 percent to P1.93 billion on the back of a 65 percent surge in revenues.
To further boost sales, SMDC will launch six new projects this year in the cities of Pasig, Quezon, Pasay, Manila and Parañaque.
Meanwhile, SM Hotels and Conventions Corp. recently opened the Pico Sands Hotel at the Pico De Loro Cove of Hamilo Coast, which is SM’s large-scale resort and ecotourism project in Nasugbu, Batangas. Pico Sands Hotel, with a GFA of 10,800 sqm, offers 154 first-rate guestrooms. Its amenities include elegant indoor and alfresco dining areas, a spa and fitness section, and a bar lounge, among others. Members and guests of Hamilo Coast may also enjoy the facilities and amenities of Pico De Loro’s Beach and Country Clubs.
Sio said the company is considering whether it should tap new borrowings given the threat of looming interest rate hikes.