SM Investments Corp., the investment holding company of the Sy Group, said Wednesday net income in the first half surged 32 percent year-on-year to P36.5 billion on double-digit growth in revenue on the back of strong consumer spending and steady economic growth.
Consolidated revenue rose 18 percent to P286.3 billion for SM Investments, whose business interests span banking, shopping mall operations, office and convention center leasing, retail, and renewable energy.
“Our performance was driven by fundamental demand, without the added benefit of post-pandemic ‘revenge spending’ that contributed to last year’s results. We experienced robust consumer confidence, consistent with the Philippines’ overall economic growth, record low unemployment and improving inflation environment. This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters,” SM Investments president and chief executive officer Frederic DyBuncio said in a statement.
Banking accounted for 47 percent of SM’s net income in the first half while the retail business added 17 percent, property contributed 26 percent while 10 percent came from portfolio investment.
SM Retail net income grew 21 percent to P8.4 billion on the back of a 15 percent growth in revenues to P188.9 billion from PHP164.3 billion. Revenue growth reflected increased shopping activity and improved employment.
“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence,” DyBuncio said.
SM Retail and its affiliates added 174 stores in the first half, bringing the total retail network to 3,677 stores.
Property developer SM Prime Holdings Inc. reported a 38 percent growth in net income to P19.4 billion, buoyed by rental revenue from shopping mall, offices, hotels and convention centers as well as cinema ticket sales.
Meantime, BDO Unibank Inc. and China Banking Corp. both delivered good results in the first half on higher interest income and larger deposit base and loan portfolios.
Portfolio investments, meantime, got a boost from improving demand for tourism and transport, energy and higher consumer spending. The Philippine Geothermal Production Co. has slated new projects seen to boost steam production in Northern Luzon to increase its renewable energy capacity.
SM Investment ended the first half with total assets of P1.5 trillion, up 2 percent.
