Driven by the stronger consumer spending that pushed up the performance of its businesses, Sy-led conglomerate SM Investments Corp. (SMIC) logged a consolidated net income of P40.2 billion in the first half of the year, up 10 percent from P36.5 billion. 

In a stock exchange filing on Wednesday, the company said consolidated revenues rose by 5 percent in the first half to P301.4 billion from P286.7 billion year-on-year.

“SM’s double-digit growth in the first half results reflects a positive environment for our businesses,” SM Investments President and chief executive officer Frederic C. DyBuncio said. 

“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. 

Banking drives growth

In terms of total net earnings, the banking sector held the largest portion, accounting for 50 percent. Property contributed a significant 27 percent, followed by retail’s 14 percent. Portfolio investments made up the remaining 9 percent of the earnings.

In the first semester, BDO Unibank, Inc. reported a 12 percent year-over-year increase in net earnings, reaching P39.4 billion. It was primarily driven by the enhanced momentum of its core intermediation and fee-based services businesses.

China Banking Corp., on the other hand, net income rose to a record P11.4 billion, up 6 percent compared to the same period last year due to improved core lending and deposit-taking activities.

SM Prime Holdings, Inc. reported its consolidated net income increased 13 percent to P22.1 billion from P19.4 billion in the same period last year. Consolidated revenues grew 8 percent to P64.7 billion from P59.9 billion.

SM Retail net income stood at P7.6 billion from P8.4 billion last year, due to a high base effect from the impact of the lifting of mobility restrictions on consumption in 2023.

As of the end of June, SMIC’s total assets stood at P1.6 trillion, up by 1 percent from the same period last year. The gearing ratio, on the other hand, remained conservative with 33 percent net debt to 67 percent equity.