PASAY CITY, Philippines, November 13, 2024 — SM Investments Corporation (SM Investments) reported a consolidated net income of PHP 60.9 billion for the first nine months of 2024, marking a 9% increase from PHP 55.9 billion during the same period last year. Consolidated revenues also rose by 5% to PHP 462.5 billion, up from PHP 440.4 billion in the prior year.
“We observed solid growth across our businesses in the third quarter, particularly in banking. With inflation easing, our outlook remains positive. An improving macroeconomic landscape is expected to benefit both our businesses and consumers,” said Frederic C. DyBuncio, President and CEO of SM Investments.
Banking accounted for 50% of the total net income, followed by property at 27%, retail at 15%, and portfolio investments contributing 8%.
Retail
SM Retail reported a net income of PHP 12.8 billion, slightly down from PHP 13.7 billion in the previous period.
Retail revenues increased by 4% to PHP 301.8 billion, compared to PHP 289.9 billion last year.
- Department stores saw normalized margins, which remained higher than pre-pandemic levels.
- Food retail achieved a 7% revenue growth, driven by increased volume and expansion.
- Specialty stores performed strongly in discretionary categories like health & beauty and fashion.
Banking
BDO Unibank, Inc. (BDO) achieved a 12% increase in net profit, reaching PHP 60.6 billion, supported by strong contributions from core intermediation and fee-based services.
- Gross customer loans grew by 13% year-on-year across all market segments.
- Total deposits rose by 10% year-on-year.
- The non-performing loan (NPL) ratio decreased to 1.82%, with NPL coverage improving to 178%.
China Banking Corporation reported a record net income of PHP 18.4 billion, up 13%, due to robust growth in core operations.
- Loan portfolio expanded by 14% to PHP 871.6 billion, driven by business and consumer lending.
- Asset quality improved with the NPL ratio decreasing to 1.8%, and NPL coverage standing at 141%, above the industry average.
- Total deposits increased by 13% to PHP 1.3 trillion.
Property
SM Prime Holdings posted a 12% increase in consolidated net income to PHP 33.9 billion, compared to PHP 30.1 billion in the previous year. Consolidated revenues rose by 8% to PHP 99.8 billion from PHP 92.6 billion.
- The mall business, contributing 57% of consolidated revenues, saw an 8% growth to PHP 56.5 billion. Mall rental income grew by 8% to PHP 48.5 billion, while revenues from cinemas, event ticket sales, and others increased by 4% to PHP 8.0 billion.
- The residential segment recorded a 9% rise in revenues to PHP 31.2 billion, with reservation sales amounting to PHP 47.0 billion.
- Other key segments, including offices, hotels, and convention centers, generated PHP 11.0 billion in revenues, an 11% increase from PHP 9.9 billion in the prior period.
Portfolio Investments
Portfolio investments continued to contribute positively to the overall net income:
- 2GO Group, Inc. saw a 14% increase in revenues, driven by higher travel activity and growth in the tourism sector.
- Atlas Consolidated Mining and Development Corporation achieved a 7% revenue increase, supported by higher copper and gold prices.
Balance Sheet
SM Investments’ total assets grew by 4% to PHP 1.7 trillion. The company maintained a conservative gearing ratio of 32% net debt to 68% equity.
About SM Investments Corporation
SM Investments Corporation is a leading company in the Philippines with a diversified portfolio in retail and banking. The company also invests in high-growth ventures in the emerging Philippine economy.
- SM’s retail operations are the largest and most diverse in the country, encompassing grocery stores, department stores, and specialty retail stores.
- Its property arm, SM Prime Holdings, Inc., is the Philippines’ largest integrated property developer, with interests in malls, residences, offices, hotels, convention centers, and tourism-related projects.
- SM also holds significant stakes in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth-largest private domestic bank.
For more details, visit www.sminvestments.com.