SM Investments 1Q 2025 Net Income Rises 9% to P20B

SM Investments Corporation posted a consolidated net income of P20.1 billion in the first quarter of 2025, marking a 9% increase from P18.4 billion in the same period last year.

Consolidated revenues for the January to March period rose 6% to P152.0 billion, up from P143.7 billion in the first quarter of 2024.

“We are encouraged by the positive start to 2025. Consumer confidence remains good and our businesses are well-positioned to serve in all categories. Positive sentiment is supported by falling inflation, which was at 1.4% in April,” said Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments.

“We continue to monitor uncertainties in the global macroeconomic environment, but remain positive about the Philippines. SM remains focused on serving and enabling our local customers and stakeholders,” Mr. DyBuncio said.

Banking accounted for 51% of reported net earnings, followed by property at 29%, retail at 14% and portfolio investments at 6%.

Retail

SM Retail’s net income grew 18% to P3.6 billion from P3.1 billion in the same period last year. Revenues were up 7% to P100.3 billion from P93.5 billion.

Revenues for food retail increased 8% to P61.5 billion driven by improved margins in SM Markets. In non-food retail, revenues of the department store business rose 6% to P23.5 billion. Revenues for specialty retail grew 7% to P21.8 billion driven by spending across all categories. Discretionary spending was strongest in the health & beauty and fashion categories.

Banking

BDO Unibank, Inc. reported net income increased to P19.7 billion from P18.5 billion in the same period last year supported by the double-digit growth in loans and a solid performance in fee income.

China Banking Corporation sustained its momentum from strong core business growth, posting P6.5 billion in net income, up 10% from the same period last year. Net interest income increased by 14% to P17.1 billion, driven by higher asset yields and loan volume which offset increased interest expenses.

Gross loans hit P954 billion, up 19% on brisk lending to businesses and consumers. On the funding side, the bank generated 8% more deposits to P1.3 trillion, underpinned by the sustained increase in checking and savings accounts (CASA) and time deposits.

Property

SM Prime Holdings, Inc. reported net income grew 11% to P11.7 billion from P10.5 billion in the same period last year, driven by steady revenue growth, margin improvement and disciplined cost management.

Total revenues rose 7% to P32.8 billion from P30.7 billion due to higher rental income, revenue recognition from real estate sales and other revenues.

Malls accounted for 69% of earnings and delivered P8.1 billion, up 13% from P7.2 billion, fueled by increased foot traffic, high occupancy and growing interest in experiential offerings.

Residential earnings rose 4% to P2.1 billion from P2.0 billion, accounting for 18% of net income. The upturn was supported by higher revenue recognition from completed projects and prior-year sales.

The office and warehouse segment contributed 10% to total net income, with earnings rising 15% to P1.2 billion from P1.0 billion last year. Stronger occupancy and prudent cost management contributed to the improved performance.

Hotels and convention centers contributed 3%, posting a 17% increase to P362 million from P309 million, owing to strong room bookings and a robust calendar of MICE events.

Portfolio Investments

The portfolio investments’ performance was driven by NEO which contributed 38% of total portfolio income, Philippine Geothermal Production Company which delivered 36% and Belle Corporation which contributed 11%.

Balance Sheet

Total assets of SM Investments stood at P1.7 trillion. Gearing ratio remained conservative with 31% net debt to 69% equity.