By Iris Gonzales | The Philippine Star
May 11, 2023
MANILA, Philippines — SM Investments Corp. (SMIC), the listed conglomerate of the Sy Group, grew its net income by 33 percent in the first quarter of the year to P17.3 billion.
In a statement, revenues grew by 21 percent to P138.2 billion.
SMIC president Frederic DyBuncio said the company was able to continue the strong momentum of 2022.
He expects the growth to continue, along with the continuing recovery of the economy.
“We are well positioned for continued growth and prepared for any macroeconomic uncertainties. Meanwhile the whole group is pushing ahead with regional expansion plans to serve more Filipinos,” DyBuncio said.
Among the different business segments, SMIC’s banking business accounted for 47 percent of reported net earnings from core businesses, followed by property at 26 percent, retail at 17 percent and portfolio investments at 10 percent.
Leading the banking segment is BDO Unibank Inc., which reported a net income of P16.5 billion, up 41 percent from a year ago on the back of solid loan and deposit growth, robust fee-income generation and improved asset quality.
China Banking Corp., meanwhile, booked a P5 billion net income for the first quarter, up three percent from a year ago.
The property business, SM Prime Holdings Inc. (SM Prime) registered a consolidated net income of P9.4 billion, up 27 percent from the P7.4 billion in the same period last year while consolidated revenues grew by 20 percent to P28.7 billion.
Revenues from malls surged by 88 percent to P15.4 billion while revenues of the residential business group, led by SM Development Corp. (SMDC), was lower by 29 percent to P8.5 billion partly due to canceled sales as an effect of high inflation.
Offices, hotels, and convention centers recorded a 59 percent jump in revenues to P3.2 billion while retail revenues were up 22 percent to P91.2 billion as consumers’ purchasing power remained stable despite higher inflation.
This was reflected in the strong department store business and food retailing segment, which was likewise strong with constant spending on food essentials.
Specialty retail growth was also driven by discretionary spending on fashion, accessories, and sports items.