SM Investments Corporation's Q12024 Net Income Grows to P18.4 Billion

The consolidated net income of SM Investments Corporation (SMIC) increased to P18.4 billion in the first quarter from P17.3 billion at the same time the previous year, a 6% increase. ​Compared to the same period last year, when consolidated revenues were P138.3 billion, they climbed by 4% to P144.0 billion in January to March.

“We continue to benefit from the country’s underlying economic growth and we adapt to reflect consumers’ evolving spending habits and priorities,” said SM Investments President and Chief Executive Officer Frederic C. DyBuncio. “Looking ahead, our outlook remains cautiously optimistic and our expansion is on track.”
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52% of reported net earnings from core operations were from banking, with 29% coming from real estate, 12% from retail, and 7% from portfolio investments.

From P3.9 billion during the same time last year, SM Retail's net income increased to P3.1 billion. From P91.3 billion to P93.8 billion, revenues increased by 3%.

Retail food sales climbed by 6% to P57.0 billion.

Due to consumers' restrained spending, non-food retail revenues for department stores were P22.4 billion, down 4%, and specialized retail revenues were P20.4 billion, down 1%.
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Due to the consistent performance of its core businesses, BDO Unibank, Inc. reported net income of P18.5 billion, up 12% over the same time the previous year.

With a 13% growth in gross client loans, net interest income rose by 13%. With the help of a low-cost Current Account/Savings Account (CASA), deposits increased by 13%.

Because the bank continued to implement conservative credit and provisioning policies, asset quality remained constant. The ratio of non-performing loans was 1.88%, while the coverage of non-performing loans was 181%.

Due to the strong expansion of its core businesses, China Banking Corporation reported P5.9 billion in net income for the first quarter of this year, an 18% increase from the same period the previous year.
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Due to better asset yields and a greater volume of loans, net interest income increased by 18% on an annual basis to P15.0 billion.

Due to high demand for loans from both consumers and businesses, gross loans climbed by 11% to P805 billion. Regarding funding, the total amount of deposits increased by 13% to P1.2 trillion. As NPL coverage increased to 143%, the ratio of non-performing loans was 1.8%.

Consolidated net income for SM Prime Holdings, Inc. (SM Prime) was P10.5 billion, 11% more than P9.4 billion during the same time last year. From P28.6 billion to P30.7 billion during the same time last year, consolidated revenues increased by 7%. 
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59% of total revenues come from the mall industry, which grew 7% to P18.2 billion. Mall leasing revenue increased by 8% to P15.8 billion over the same period in the previous year. P2.5 billion was made up of other revenues, including ticket sales for events and movies.

10% more was made during the same period last year, with P8.5 billion in revenues recorded by the main residential business segment, which accounts for 28% of combined revenues. The sales of reservations totaled P26.5 billion.

The offices, lodging, and convention centers that make up the other business divisions saw a 9% increase in revenue to P3.4 billion.

Atlas Mining and the NEO Group drove portfolio investments' net profits in the first quarter.

SM Investments expects the portfolio businesses to make a larger contribution to the Group’s revenues and earnings over time.

Total assets of SM Investments stood at P1.6 trillion. Gearing ratio remained conservative with 33% net debt to 67% 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.