SM Investments Corporation (SM Investments) reported a consolidated net income of P42.6 billion for the first half of 2025, a 6 percent year-on-year increase from P40.2 billion, driven by broad-based gains across its banking, retail, and property businesses. Consolidated revenues grew 6 percent to P319.2 billion from P301.4 billion in the same period last year.
“We continue to see steady growth across our core businesses, supported by favorable macroeconomic conditions in the Philippines,” said SM Investments president and CEO Frederic C. DyBuncio. He highlighted strong bank lending, resilient consumer spending, and easing inflation as key tailwinds.
Banking remained the largest earnings driver, contributing 50 percent of SM Investments’ net income.
BDO Unibank posted a 3 percent increase in net income to P40.6 billion. Net interest income rose 7 percent as customer loans grew 14 percent to P3.4 trillion. Deposits surpassed P4 trillion, while the bank maintained robust asset quality with a lower NPL ratio of 1.75 percent.
China Banking Corp. delivered stronger performance, with net income rising 14 percent to P13 billion, supported by a 15 percent increase in net interest income. The bank also saw a 10 percent expansion in low-cost deposits and proactively built credit provisions despite a lower NPL ratio of 1.6 percent.
Property contributed 28 percent of SM Investments’ total income. SM Prime Holdings, Inc. (SM Prime) posted an all-time high first-half net income of P24.5 billion, up 11 percent, supported by strong rental and residential revenues.
Consolidated revenues rose 5 percent to P68 billion.
Mall rental income surged 14 percent to P17 billion, benefitting from new mall openings and increased foot traffic.
Residential earnings grew modestly by 2 percent to P5.1 billion.
Office and warehouse segment income increased 9 percent to P1.7 billion.
Retail accounted for 15 percent of earnings, with SM Retail net income up 10 percent to P8.4 billion and revenues rising 8 percent to P211.8 billion.
Food retail revenues climbed 8 percent to P127.1 billion, fueled by store expansion and volume growth.
Department store revenues rose 11 percent, partly due to the shift in school opening.
Specialty retail grew 5 percent, led by demand for back-to-school, fashion, health, and beauty products.
Portfolio investments contributed 7 percent of SM Investments’ net income. Key contributors included:
Philippine Geothermal Production Company – 35 percent of portfolio income
NEO – 30 percent
2GO – 16 percent
SM Investments’ total assets reached P1.7 trillion, up 2 percent, with a conservative gearing ratio of 32 percent net debt to 68 percent equity, maintaining financial flexibility amid global uncertainties.
Despite external headwinds, DyBuncio expressed confidence in sustained economic and business growth for the remainder of the year, citing a stable Philippine economy and improving inflation backdrop.
