SM Investments Corporation Net Income Rises 9% to P60.9 Billion in YTD Sept 2024

SM Investments Corporation announced a consolidated net income of P60.9 billion for the first nine months of 2024, a 9% increase from P55.9 billion in the same period last year. Consolidated revenues also grew by 5%, reaching P462.5 billion, up from P440.4 billion in the previous period.

“We continued to see good growth across our businesses in the third quarter, particularly in banking. With inflation easing, we remain positive. An improving macroeconomic environment should help both our businesses and consumers moving forward,” said Frederic C. DyBuncio, President and CEO, SM Investments.

Of total net income, banking accounted for the largest share at 50% while property accounted for 27%. Retail pitched in 15% while portfolio investments contributed 8%.

SM Retail reported net income was at P12.8 billion, from P13.7 billion in the previous period.

Retail revenues grew 4% to P301.8 billion from P289.9 billion in the previous period.

Department store performance saw normalization of margins, which remain higher than pre-pandemic levels. Food retail performance remained positive, with revenue growth of 7%, supported by better volumes and expansion. Specialty store performance was strong in discretionary categories such as health & beauty and fashion.

BDO Unibank, Inc. (BDO) reported its net profit increased 12%to P60.6 billion backed by the sustained contribution of its core intermediation and fee-based service businesses.

Gross customer loans increased 13% year-on-year on broad-based growth across all market segments, while total deposits expanded 10% year-on-year.

Non-performing loan (NPL) ratio declined to 1.82%, while NPL coverage increased to 178%. 

China Banking Corporation posted a record consolidated net income of P18.4 billion, up 13% on the back of sustained strong growth from core businesses.

Its loan portfolio reached P871.6 billion, up by 14% driven by both business and consumer lending segments. Asset quality improved with the non-performing loans ratio easing to 1.8%. NPL cover was 141%, higher than the industry average.

Total deposits increased by 13% to P1.3 trillion.

SM Prime reported a 12% growth in consolidated net income to P33.9 billion from P30.1 billion in the same period last year. Consolidated revenues increased 8% to P 99.8 billion from P92.6 billion.

The mall business, which accounts for 57% of consolidated revenues reported an 8% growth to P56.5 billion. Mall rental income grew by 8% to P 48.5 billion while cinemas, event ticket sales and other revenues rose 4% to P8.0 billion.

SM Prime’s primary residential business reported a 9% growth in revenues to P 31.2 billion with reservation sales of P 47.0 billion.

SM Prime’s other key businesses, which include offices, hotels, and convention centers, generated P11.0 billion in revenues, up 11% from P9.9 billion in the same period last year.

Portfolio investments sustained its positive contribution to consolidated net income. 2GO Group, Inc. revenues grew 14% driven by increase in travels and the growing tourism industry. Atlas Consolidated Mining and Development Corporation increased revenues by 7% due to higher copper and gold prices.

Total assets of SM Investments increased 4% to P1.7 trillion. Gearing ratio remained conservative with 32% net debt to 68% equity.

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

​SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.