SM Investments Corp., the flagship investment holding company of the Sy Group, said Wednesday net income in the first half rose 10 percent to P40.2 billion, with earnings gathering traction in the second quarter on improved discretionary spending and gains from operations of banking and property development businesses as well as portfolio investments.
The second quarter alone saw net income rise 13 percent to P21.8 billion. Consolidated revenue also grew by 5 percent to P301.4 billion in the first half, with second quarter revenue up 6 percent to P157.7 billion.
“SM’s double-digit growth in the first half reflects a positive business environment, with retail sales benefiting from increased consumer spending and strong performance across our sectors. We remain cautiously optimistic for the remainder of the year,” said Frederic C. DyBuncio, president and chief executive officer of SM Investments.
Banking, which includes BDO Unibank Inc. and China Banking Corp., contributed the largest share at 50 percent. This was followed by property at 27 percent, retail at 14 percent, and portfolio investments at 9 percent.
DyBuncio said SM Investments’ issuance of its maiden Euro Medium-Term Notes, attracted USD500 million and was 3.2 times oversubscribed. The issuance, the largest offshore bond offering since 2014, was listed on the Singapore Exchange Securities Trading Limited.
SM Retail’s net income in the first half of 2024 decreased to P7.6 billion from P8.4 billion last year, reflecting the surge in spending last year after the lifting of mobility restrictions in 2023. Even so, revenue grew 4 percent to P196.9 billion.
In the second quarter alone, retail saw a 6 percent increase in revenue and a 2 percent rise in net income, driven by higher spending on discretionary items such as appliances, beauty, and fashion. Specialty retail revenues rose by 5 percent, and food retail revenues grew by 7 percent.
SM Retail expanded its network by 355 stores in the first half, bringing the total to 4,208 at the end of June.
SM Prime Holdings, Inc. reported a 13 percent increase in net income to P22.1 billion and an 8 percent rise in revenue to P64.7 billion. The mall business, which constitutes 58 percent of consolidated revenue, rose 8 percent, with mall rental revenue up by 9 percent to P32.1 billion.
SM Prime’s residential business, accounting for 29 percent of revenue, also grew by 8 percent to P18.9 billion, with reservation sales hitting P40.2 billion. Other segments, including offices, hotels, and convention centers, reported a 13 percent revenue increase to P7.0 billion.
BDO posted a 12 percent increase in net earnings to P39.4 billion, supported by strong performance in core intermediation and fee-based services. Net interest income rose 11 percent to P99.6 billion, with gross customer loans and total deposits both expanding by 13 percent.
BDO’s asset quality remained stable, with a non-performing loan ratio of 2.06 percent and NPL coverage at 169 percent. The bank also issued its third ASEAN Sustainability Bonds, raising P55.7 billion to support sustainable development projects.
China Bank had a record net income of P11.4 billion for the first half, a 6 percent increase from last year. Net interest income grew by 19 percent to P30.4 billion, and gross loans rose by 10 percent to P817 billion. Deposits grew by 14 percent to P1.3 trillion, with an improved NPL ratio of 1.9 percent.
Atlas Consolidated Mining and Development Corp. reported net income of P2.07 billion, with revenues rising 23 percent to P12.5 billion, driven by higher copper prices. The Philippine Geothermal Production Co., Inc. is advancing new geothermal energy projects in Luzon, contributing to the country’s renewable energy goals. 2GO Group Inc. launched new passenger vessels, enhancing its freight and passenger services between Manila, Visayas, and Mindanao.
