SM Investments' profits rise on stronger banking, property units

SM Investments Corporation, the flagship of the Sy family, reported a nine percent growth in consolidated net income to P60.9 billion in the first nine months of 2024 from P55.9 billion in the same period last year on stronger earnings of its banking and property units.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues also grew by five percent to P462.5 billion from P440.4 billion in the same period of the previous year.

“We continued to see good growth across our businesses in the third quarter, particularly in banking,” said SM Investments President and CEO Frederic C. DyBuncio. 

He noted that, “With inflation easing, we remain positive. An improving macroeconomic environment should help both our businesses and consumers moving forward.

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

SM Retail reported a decline in net income to P12.8 billion from P13.7 billion in the previous year. Retail revenues grew four percent to P301.8 billion from P289.9 billion in the first three quarters of 2023.

Department store performance saw normalization of margins, which remain higher than pre-pandemic levels while food retail’s performance remained positive, with revenue growth of seven percent, supported by better volumes and expansion. 

Specialty store performance was strong in discretionary categories such as health and beauty and fashion.

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

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

SM Prime Holdings Inc. reported a 12 percent growth in consolidated net income to P33.9 billion from P30.1 billion in the same period last year. Consolidated revenues increased eight percent to P99.8 billion from P92.6 billion.

Portfolio investments sustained its positive contribution to consolidated net income with 2GO Group’s revenues growing 14 percent due to the increase in travels and the growing tourism industry. 

Atlas Consolidated Mining and Development Corporation increased revenues by seven percent due to higher copper and gold prices.