SM Investments remains bullish on Philippine economy

CEBU, Philippines — SM Investments Corporation (SMIC), the parent company of the SM Group, remains bullish on the Philippines’ economic trajectory, reinforcing its commitment to driving growth through its diversified portfolio in retail, property, and financial services.

According to Erwin G. Pato, Executive Vice President for Treasury, Finance, and Planning, SMIC’s strategic investments will continue to align with the country’s consumption-driven economy.

In a move reflecting this optimism, SMIC recently unveiled a P60-billion (USD1 billion) share buyback program—the largest in Philippine corporate history.

This initiative underlines the company’s confidence in its long-term value and the positive economic outlook for the country.

“We’re undertaking this buyback because we believe in our company’s growth potential,” Pato said adding that with 70 percent of the country’s gross domestic product (GDP) driven by consumption, SM’s investments in retail, integrated property development, and financial services remain well-positioned to capitalize on this momentum.

SMIC’s consolidated net income climbed 7 percent in 2024, reaching P82.6 billion, up from P77.0 billion in 2023.

The group’s retail arm, SM Retail Inc., also posted a net income of P20.9 billion, reflecting a year-on-year increase from P19.9 billion.

Pato highlighted that SMIC’s scale and presence across key industries make it a “proxy of the Philippine economy,” with its businesses embedded in the daily lives of millions of Filipinos.

He noted that the anticipated reduction in interest rates could further boost macroeconomic conditions and help the government achieve its inflation target of 2 percent to 4 percent, creating favorable tailwinds for consumer-driven growth.

SM Prime Holdings, Inc., the group’s property arm, is allocating P100 billion this year for the continued expansion of its malls, residential projects, offices, hotels, and convention centers. This investment is driven by expectations of sustained growth in consumer demand and increased corporate activity, Pato said.

As the largest integrated property developer in the Philippines, SM Prime’s aggressive expansion aims to strengthen its position in key growth areas while capitalizing on the country’s rising urbanization and improving purchasing power.

SMIC’s diversified business portfolio positions it as a dominant force in the Philippine economy.

Its retail operations remain the largest and most diversified in the country, encompassing grocery stores, department stores, and specialty retail chains.

In the financial sector, SMIC holds major interests in BDO Unibank, Inc., the largest bank in the Philippines, and China Banking Corporation, the fourth-largest private domestic bank.

Meanwhile, SM Prime’s property portfolio spans malls, residences, offices, hotels, and tourism-related developments, reflecting its comprehensive approach to integrated property development.

Pato emphasized that SMIC’s strategic initiatives, coupled with favorable economic conditions and strong consumer confidence, position the group for sustained growth.

“Our investments are aligned with the evolving needs of Filipino consumers, and we remain committed to supporting the country’s economic progress through our market-leading businesses,” he explained.