SM Investments earnings up 79% to P27.2 billion

MANILA, Philippines — Sy-owned holding firm SM Investments Corp. reported a consolidated net income of P27.2 billion in the January to September period, up 79 percent from P15.2 billion in the same period last year.

Consolidated revenues rose five percent to P289.4 billion in the first nine months from P276.4 billion a year ago.

Banking accounted for 60 percent of SM’s reported net earnings from core businesses, followed by property at 27 percent and retail at 13 percent. Total assets were at P1.3 trillion.

BDO Unibank Inc. delivered a net income of P32.4 billion compared to P16.6 billion a year-ago, on the bank’s resilient business franchise and normalized provisions.

China Banking Corp. posted a consolidated net income of P11.2 billion for the January to September period, 35 percent higher compared to the same period last year, on the back of sustained core business growth and effective cost management.

SM Prime Holdings Inc. reported a nine percent increase in consolidated net income to P15.6 billion in the first nine months from P14.4 billion in the same period last year. Consolidated revenues recorded P56.8 billion, six percent lower from P60.7 billion in the same period last year.

SM Prime’s residential business, led by SM Development Corp. and accounting for 56 percent of consolidated revenues, registered P32.1 billion in revenues, six percent lower from last year’s P34.2 billion.

SM Prime’s Philippine mall business, which accounts for 28 percent of consolidated revenues, recorded P15.8 billion in revenues, 14 percent lower from last year’s P18.3 billion.

The reimplementation of stricter community quarantine in August  has affected the operation of the local mall business, limiting the operation of non-essential shops in accordance with guidelines of the IATF (Inter-Agency Task Force for the Management of Emerging Infectious Diseases).

Meanwhile, SM Prime’s China mall business has reported a 28 percent increase in revenues to RMB0.59 billion in the nine-month period from RMB0.46 in the same period last year.

SM Prime’s commercial properties business reported P3.8 billion in revenues, slightly higher from the same period last year. The hotels and convention centers registered P0.9 billion in revenues for the first nine months of 2021.

“Our third quarter results reflect the resilience of all our businesses and early signs of the economy opening up. With improved vaccination rates across the country and lower COVID-19 cases, we are optimistic about conditions for the fourth quarter, but continue to be vigilant about risks,” SM Investments president and CEO Frederic DyBuncio said.

In the third quarter, the SM Group made significant commitments toward sustainability and climate change. SM Investments and SM Prime Holdings Inc. both formally joined as signatories in support of the Taskforce for Climate-related Financial Disclosures (TCFD), demonstrating their commitment to safeguarding against climate risk through better disclosures.

SM Prime announced that it will target for more than 50 percent of electricity use across its businesses to come from renewable sources by the end of 2022, a commitment in support of the Philippine national goal of 35 percent renewable energy supply by 2030.