SM Investments Corp., the listed company that holds various interest of the Sy Group, said Wednesday net income in the first nine months of the year surged 30 percent to P55.9 billion, sustained higher by strong consumer spending.
Total revenue rose 1 percent to P440.4 billion as SM Investments interests in shopping malls, banking, retail, property development and portfolio investments including power and office buildings all delivered robust earnings results.
“Our ongoing healthy growth reflects buoyant consumer activity in malls and sustained spending in discretionary retail categories,” SM Investments president and chief executive officer Frederic DyBuncio said in a statement. “We look forward to the fourth quarter, while continuing to monitor the impact of food prices and interest rates on consumer wallets,” he added.
Of total net earnings, retail accounted for 18 percent, banking which includes BDO Unibank Inc. and China Banking Corp. added 47 percent, property contributed 26 percent while portfolio investments pitched in 9 percent.
SM Retail reported a 19 percent increase in net income to P13.7 billion on a 12 percent growth in revenue to P290.6 billion.
BDO reported a 35 percent jump in net income to P53.9 billion while China Bank saw a 10 percent rise in net profit to P16.2 billion. Both lenders benefited from strong loan growth that bolstered interest income.
SM Prime Holdings Inc, the group’s property arm, increased net income by 37 percent on year to P30.1 billion on the back of double-digit growth in revenue to P92.6 billion. Shopping malls accounted for 57 percent of SM Prime’s total revenue.
Portfolio investments continued to sustain growth, contributing 9% to the group’s consolidated net income. Philippine Geothermal Production Company and NEO, SM Investments’ office portfolio, contributed significantly to net income.
Total assets of SM Investments increased 4 percent to P1.5 trillion. Gearing ratio remained conservative, with 35 percent net debt to 65 percent equity.
