SM Investments Corporation (SM Investments) reported consolidated net income of P82.6 billion in 2024, a seven percent increase from P77.0 billion in 2023. Consolidated revenue also grew by six percent, reaching P654.8 billion, up from P616.3billion in the previous year.
“We ended 2024 with a strong performance, despite the high base of 2023 and inflationary headwinds during the year. Our core businesses all grew, supported by positive macroeconomic fundamentals and healthy consumer sentiment. The fourth quarter registered the highest revenue growth rate of 9. percent, giving us solid momentum into 2025,” said Frederic C. DyBuncio, president and CEO, SM Investments.
Of total net income, banking contributed the largest share at 49 percent, followed by property at 26 percent, retail at 18 percent and portfolio investments at 7 percent.
Retail
SM Retail posted a net income of P20.9 billion, increasing from P19.9 billion in the previous year.
Retail revenues grew five percent to P434.5 billion, up from P412.9 billion in the previous year.
The food retail segment was the strongest performer, with 8 percent revenue growth, driven by expanded store networks and improved customer engagement. Specialty stores also saw solid performance, posting 3 percent revenue growth, while department store operations remained resilient.
“In retail, discretionary spending remained strong throughout the year, particularly in branded fashion, health and beauty, and household appliances. Meanwhile, food retailing gained momentum across all formats in the fourth quarter as inflation tapered,” DyBuncio said.
Property
SM Prime Holdings, Inc. (SM Prime) posted consolidated net income of P45.6 billion in 2024, up 14 percent from P40 billion the previous year driven by higher contributions from all its business segments.
Consolidated revenues during the same period rose 10 percent to P140.4 billion from P128.1 billion on higher rental income, real estate sales and revenues from services and experiential offerings.
Malls accounted for 55 percent of revenues, followed by residences at 34 percent, hotels and convention centers at 6% and offices and warehouses at 5 percent.
Banking
BDO reported P82.0 billion in net income, 12 percent higher than in 2023, supported by the solid performance across its core businesses. Net interest income increased 8 percent with the expansion in earnings assets and growth in the bank’s service businesses. Gross customer loans grew by 13 percent to P3..2 trillion with double-digit growth across all market segments.
Total deposits increased 6 percent to P3..8 trillion, with CASA (Current Account/ Savings Account) ratio at 71 percent.
Asset quality remained steady with non-performing loan (NPL) ratio at 1.83 percent and NPL coverage at 145 percent.
Meanwhile, China Banking Corporation booked a 13 percent increase year-on-year in net income to P24.8 billion, supported by the sustained strength of core businesses. The bank generated 21 percent higher revenues of P65.5 billion mainly from net interest income which grew 19 percent to P63.5 billion on the back of asset base expansion and improvement in net interest margin.
Gross loans increased by 18 percent to P933 billion on higher loan demand across all customer segments. Total deposits grew by 12 percent to P1..3 trillion.
Taking a more proactive stance against portfolio risks despite the easing of its non-performing loans (NPL) ratio to 1.6 percent, the bank increased its credit provisions to P3.3 billion. The resulting NPL coverage was higher at 139 percent.
Portfolio Investments
Portfolio investments continued to perform positively with Philippine Geothermal Production Company contributing 46 percent of total portfolio net income, NEO at 22 percent and Belle Corporation at 10 percent.
Expansion
In 2024, SM expanded by an additional 619 retail stores, two malls and 73 bank branches, with over 85 percent of its footprint in the provinces. As SM expands, it continues to broaden access to different markets and enhance synergies across its businesses.
Balance Sheet
Total assets of SM Investments increased 7 percent to P1.7 trillion, while the group maintained a conservative 31 percent net debt to 69 percent equity ratio.
To support its growth strategy, SM successfully priced a USD500 million bond issuance under its USD3 billion Euro Medium-Term Notes (EMTN) program. This marked the group’s largest bond issuance since 2014, providing greater flexibility amid market volatility.
The company was recognized as the “Philippines Capital Market Deal of the Year” by International Financing Review Asia (IFR Asia) for this USD500 million five-year bond issuance in 2024. The deal, the largest five-year issuance by a Philippine corporate in 2024, reopened the market amid volatile conditions. This recognition also underscored SM Investments’ leadership in the capital markets and the strong confidence of global investors in the company’s financial strength.
The bond was priced at 5.466 percent yield, or 135 basis points over US Treasuries, tightening by 35 basis points from initial guidance.
