• Net income rose 10 percent to P90.5 billion
• Revenues climbed 4 percent to P681.7 billion
• Banking accounted for 49 percent of earnings
Sy family-backed conglomerateSM Investments Corp. pushed consolidated net income past the P90 billion mark for the first time, underscoring the growing weight of its banking arm and the resilience of its property portfolio.
Net income rose 10 percent to P90.5 billion from P82.6 billion a year earlier. Revenues increased 4 percent to P681.7 billion from P654.8 billion.
The double-digit profit growth signals widening earnings power across the conglomerate’s core units, with banking now firmly at the center of the mix.
Management’s view
“Our strong fourth quarter performance reinforced our full year results,” said Frederic C. DyBuncio, president and CEO of SM Investments. “This reflected resilient consumer spending, improved operational efficiencies and prudent financial management across our core businesses.”
SM CEO still ‘optimistic’
“Looking ahead, we remain optimistic about the Philippine growth outlook, supported by easing inflation, steady employment, stable interest rates and sustained remittance flows that underpin household incomes and provincial market expansion,” DyBuncio said.
“The group will maintain its expansion strategy and disciplined capital allocation, while continuing to strengthen its ecosystem to serve more customers across the country,” he added.
Banking at the core
Banking delivered 49 percent of consolidated net income, underscoring the group’s pivot toward financial services as its main earnings driver.
BDO Unibank, Inc. posted record net income of P87.2 billion, up 6 percent. Gross loans expanded 13 percent to P3.7 trillion while deposits increased 10 percent. Net interest income grew 9 percent. Non-performing loans eased to 1.68 percent with 133 percent coverage.
China Banking Corp. grew net income 13 percent to P28 billion. Loans climbed 13 percent to P1.1 trillion and deposits rose 9 percent to P1.4 trillion. Asset quality remained steady with a 1.6 percent non-performing loan ratio.
Property steady, retail resilient
SM Prime Holdings, Inc. lifted net income 7 percent to P48.8 billion as revenues reached P141.1 billion. Malls accounted for 60 percent of revenues, with residential contributing 30 percent.
Retail net income edged up 1 percent to P21.1 billion as revenues rose 5 percent to P458.1 billion, supported by food and essential spending.
Portfolio adds steady lift
Portfolio investments contributed 6 percent of consolidated net income, providing incremental support to group earnings.
Income was driven mainly by Philippine Geothermal Production Company and NEO buildings, which together accounted for 56 percent of portfolio income. Logistics firm 2GO and food brand Goldilocks delivered a combined 20 percent share.
—Edited by Miguel R. Camus
