SM Investments Corporation, parent of the SM Group, reported a consolidated net income of PHP45.9 billion for the first half of 2026, an 8 percent increase from the ₱42.6 billion recorded in the same period last year. Consolidated revenues also rose 6 percent to reach ₱339.2 billion, up from ₱319.2 billion a year earlier, supported by steady consumer demand and the group’s diversified operations.
“Consumer spending in our retail stores and malls remained healthy despite recent economic shocks,” said Frederic C. DyBuncio, president and chief executive officer of SM Investments. “The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient. Steady demand across our consumer-led businesses plus solid contributions from our portfolio companies continue to reflect the strength of our diversified business model. This gives us the confidence to keep investing for long-term growth.”
By earnings share, banking accounted for 47 percent of total net income, followed by property at 27 percent retail at 15 percent, and portfolio investments at 11 percent. SM Retail recorded a 5 percent rise in net income to ₱8.9 billion, while operating income grew 12 percent to ₱14.0 billion, showing effective cost management even amid higher inflation. Growth came from sustained need for daily goods as well as continued expansion of store networks. Food retail saw consistent sales gains across supermarkets and minimarts, while specialty retail also posted better results led by home, fashion and kids segments. Higher sales in home goods were driven by demand for alternative power sources, with Kultura and Crocs leading growth in other fashion categories. Toys, pet supplies and stationery boosted sales in the kids segment. Though not publicly listed, SM Retail serves as the group’s largest consumer-facing business and is a key source of steady cash flow for the parent company.
The group’s mall operations also saw improved performance, with revenues rising 8 percent to ₱41.8 billion, supported by higher occupancy rates, stronger tenant sales and better operational efficiency. Banking businesses delivered mid-teens loan growth and remained the largest contributor to overall earnings, underscoring the strength of its core banking operations. Portfolio investments also improved notably, led by better results from Atlas Consolidated Mining and Development Corporation due to higher copper prices. 2GO Group, Inc. recorded higher revenues across all areas, with more passengers lifting travel-related earnings and growing online purchases driving logistics volumes. Philippine Geothermal Production Company, Inc. also reported higher revenues alongside energy price adjustments.
SM’s wide reach, steady income streams and strong ties to the domestic consumer economy help it generate reliable earnings even through changing economic conditions. The group can direct funds toward expansion and long-term growth, while the parent company uses its solid cash flow to improve returns for shareholders. Total assets stood at ₱1.82 trillion, with a careful financial structure made up of 31 percent net debt and 69 percent equity.
“We remain positive about the outlook for the second half of the year, while staying mindful of macroeconomic uncertainties,” Mr. DyBuncio added. “Our diversified portfolio, prudent balance sheet and disciplined approach to capital allocation position us well to continue investing in the Philippines and creating long-term value for our customers, communities and shareholders.”
