SMIC posts flat earnings last year

MANILA, Philippines - SM Investments Corp. (SMIC) reported a consolidated net income of P28.4 billion in 2015, the same level as the previous year.

Consolidated revenues grew to P295.9 billion for the period.

SM president Harley Sy said the favorable economic conditions in the domestic market boosted growth.

“Our strong underlying earnings growth in 2015 was due to favorable domestic market conditions and improved efficiencies which helped us widen our margins particularly in retail and property,” Sy said.

SM’s underlying earnings increase was driven by a 17 percent growth in retail earnings, 14 percent jump in property recurring net income and 10 percent rise  in bank net income.

According to the conglomerate, banks accounted for 40 percent of SM’s consolidated earnings, property 38 percent and retail 22 percent.

In terms of the different business segments, SM Retail Inc. — comprised of SM Markets and the SM Store — reported sustained growth in total sales of seven percent to P211.4 billion, while net income rose 17 percent to P6.8 billion last year.

For SM Markets, the group added 31 new stores, most of which are standalone Savemore stores while the SM Store opened three stores in San Mateo, Rizal; Cabanatuan, Nueva Ecija and Seaside Mall in Cebu City.

In all, SM Retail had a total of 310 stores, comprising 53 The SM Stores, 45 SM Supermarkets, 44 SM Hypermarkets, 136 Savemore stores and 32 WalterMart stores, as of the end of 2015.

The banking business likewise continued to strengthen as BDO Unibank, Inc. (BDO) recorded net interest income growth of 11 percent to P57 billion in 2015, with net income rose 10 percent to an all-time high of P25 billion.

Gross customer loans grew 17 percent to P1.3 trillion while total deposits rose by 12 percent to P1.7 trillion.

Similarly, China Banking Corp. saw a seven rise in net interest to P15.1 billion, with net income up 10 percent to P5.6 billion on the back of sustained growth in core business operations.

SM Prime Holdings earlier reported a 54 percent jump in consolidated net income to P28.3 billion which includes a P7.4 billion trading gain on marketable securities booked in the first quarter. Its recurring net income, meanwhile grew 14 percent to P20.9 billion.

To date, SM Prime has a total of 56 malls in the Philippines with total retail space of 7.3 million square meters while SM Prime presently has 27 residential projects in the market, 25 of which are in Metro Manila and two in Tagaytay.

SM Development Corp. plans to launch between 11,000 and 14,000 units in Quezon City, Bicutan and Sucat in Paranaque, Las Piñas and Pasay at the Mall of Asia Complex this year.

Meanwhile, SM said it would merge its retail arm SM Retail Inc. (SM Retail) with several related retail firms. The combined entity will have 1,927 outlets and 2.4 million square meters of gross floor area.