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SM Group achieves profit of P40.2B in the 1st half of 2024, half of which came from banks

The Sy family-led conglomerate, SM Investments Corp., reported a 10 percent increase in net income for the first half of 2024, reaching P40.2 billion, with half of earnings coming from its hugely profitable banking divisions.

Revenues rose 5 percent to P301.4 billion, with second-quarter revenues growing by 6 percent to P157.7 billion, the industry giant said in a stock exchange filing on Wednesday.

Management’s view 

“SM’s double-digit growth in the first half results reflect a positive environment for our businesses,” said SM Investments president and CEO Frederic C. DyBuncio.

“Improved discretionary spending in the second quarter lifted retail sales, while our banks, property, and portfolio investments continued to deliver. We remain cautiously optimistic for the balance of the year,” he added.

Frederic C. DyBuncio
SM Investments President, CEO 

Retail, malls and banks 

SM Retail’s net income fell to P7.6 billion from P8.4 billion last year, but revenues grew 4 percent to P196.9 billion. In the first half, SM Retail added 355 stores, bringing its total to 4,208 stores.

SM Prime Holdings’ net income increased 13 percent to P22.1 billion, with revenues up 8 percent to P64.7 billion. Mall rental revenues rose 9 percent to P32.1 billion.

BDO Unibank posted a 12 percent increase in net earnings to P39.4 billion, driven by strong lending and deposit growth. Net interest income rose 11 percent to P99.6 billion.

China Banking Corp. saw net income rise 6 percent to P11.4 billion, with net interest income up 19 percent to P30.4 billion. Deposits grew 14 percent to P1.3 trillion.

"Improved discretionary spending in the second quarter lifted retail sales, while our banks, property, and portfolio investments continued to deliver. We remain cautiously optimistic for the balance of the year". 
- Frederic C. DyBuncio, SM Investments ​President and CEO 

Non-core drivers

According to SM Investments, Atlas Consolidated Mining and Development Corp. saw net income rise to P2.07 billion and revenues grow 23 percent to P12.5 billion due to higher copper prices. 

Meanwhile, 2GO Group, Inc. launched new vessels, 2GO M/V Masigla and 2GO M/V Masikap, to serve routes from Manila to Visayas and Mindanao, carrying passengers, containerized freight, and rolling cargo.

Getting cash ready for growth 

Last July 18, SM Investments raised $500 million via its overseas debt program and listed the notes on the Singapore Exchange, marking its largest offshore bond issuance since 2014.

“We were also pleased with the demand and positive feedback on our recent Euro Medium-Term Notes issuance, highlighting the quality of our financials and investability of strong Filipino companies,” DyBuncio said.

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