SMIC hikes earnings by 26% to P33.1 Billion

MANILA, Philippines — SM Investments Corp., (SMIC) the listed holding firm of the Sy family, grew its consolidated net income by 26 percent  to P33.1 billion in the nine months to September amid the strong performance of its banking and property businesses.

In a statement, SMIC said consolidated revenues rose 14 percent  to P350.7 billion.

“We are satisfied with our financial results as these reflect the continued growth in our core businesses. This quarter, we are also pleased that our efforts to strengthen our environment, social and governance (ESG) practices are being recognized,” SM president Frederic C. DyBuncio said.

Banks and property remained SMIC’s major income drivers, accounting for 44 percent and 39 percent, respectively, of  the group’s total net earnings.  Retail, meanwhile, made up 17 percent of SMIC’s net income.

BDO Unibank reported a 49 percent jump in net income to P32.1 billion as net interest income rose  six percent to P88.5 billion due to a six percent increase in customer loans to P2.1 trillion and three percent hike in total deposits to P2.4 trillion.

China Banking Corp. posted net earnings of P6.7 billion, up 21 percent year- on-year. Its loan portfolio expanded by 10 percent to P552.5 billion, while total deposits grew 12 percent to P777.2 billion. 

Net earnings of SM Retail Inc., which consist of both food (SM Markets) and non-food (The SM Store and specialty retail), reached P7.8 billion, slightly lower than last year due to the implementation of the Philippine Financial Reporting Standards (PFRS) 16 this year.  Revenues, however, grew 12 percent to P253.9 billion. 

Excluding the impact of PFRS 16, SM Retail’s net income rose eight percent, while revenues from specialty retail went up 15 percent.

The Food Retail Group added seven Savemores, two SM Supermarkets and four WalterMart stores for a total of 13 new stores. Alfamart added 174 stores.

By the end of September, SM Retail had a total of 2,693 stores comprising 64 SM Stores, 1,565 specialty retail stores, 58 SM Supermarkets, 51 SM Hypermarkets, 199 Savemores, 56 WalterMarts and 700 Alfamart stores.

SM Prime Holdings, meanwhile, saw an 18 percent expansion of its consolidated net income P27.6 billion as revenues rose 14 percent  to P85 billion.

Mall revenues climbed eight percent to P42 billion, while revenues from the residential business, led by SM Development Corp. jumped 26 percent to P31.9 billion.   Reservation sales also grew 26 percent  to P66.4 billion.

SMIC ended the third quarter with total assets of P1.1 trillion, up seven percent year-on-year.