Proving that they remain the country’s top conglomerate, SM Investments Corporation (SM Investments) posted a P20.1 billion consolidated net income in the first quarter of the year, attributed to the strong consumer confidence in the country.

In a statement sent to DAILY TRIBUNE, SM Investments said the spike in earnings was a 9 percent increase versus the P18.4 billion consolidated revenue recorded in the same period last year.

On the other hand, SM Investments’ total revenues for the January to March period rose 6 percent to P152.0 billion, up from P143.7 billion in the first quarter of 2024.

"We are encouraged by the positive start to 2025. Consumer confidence remains good, and our businesses are well-positioned to serve in all categories. Positive sentiment is supported by falling inflation, which was at 1.4% in April,” said Frederic DyBuncio, president and chief executive officer of SM Investments.

He continued: “We continue to monitor uncertainties in the global macroeconomic environment, but remain positive about the Philippines. SM remains focused on serving and enabling our local customers and stakeholders.”

Of the first-quarter earnings, the banking segment accounted for 51 percent of reported net earnings, followed by property at 29 percent, retail at 14 percent, and portfolio investments at 6 percent.

The financial report stated that SM Retail garnered a net income of P3.6 billion, growing 18 percent compared to its previous P3.1 billion in the same period last year.

Further, SM Retail’s revenues were up 7 percent to P100.3 billion from P93.5 billion.

On the other hand, revenues for food retail increased 8 percent to P61.5 billion, driven by improved margins in SM Markets.

For its non-food retail, the income of its department store business grew 6 percent to P23.5 billion.

Revenues for specialty retail grew 7 percent to P21.8 billion, driven by spending across all categories. Discretionary spending was strongest in the health and beauty and fashion categories, the report said.

Banking

Breaking down the earnings of its banking segment, the report said BDO Unibank, Inc. reported a net income of P19.7 billion compared to P18.5 billion in the same period last year, backed by double-digit growth in loans and a solid performance in fee income.

China Banking Corporation, on the other hand, gained momentum from strong core business growth, incurring P6.5 billion in net income, up by 10 percent versus last year’s numbers.

Net interest income increased by 14 percent to P17.1 billion, driven by higher asset yields and loan volume, which offset increased interest expenses.

“Gross loans hit P954 billion, up 19 percent on brisk lending to businesses and consumers. On the funding side, the bank generated 8 percent more deposits to P1.3 trillion, underpinned by the sustained increase in checking and savings accounts and time deposits,” according to the earnings report.

Property

Due to steady revenue growth, margin improvement, and disciplined cost management, SMIC’s property arm, SM Prime Holdings, Inc. (SM Prime), saw its net income grow 11 percent to P11.7 billion from P10.5 billion in the same period last year.

Total revenues rose 7 percent to P32.8 billion from P30.7 billion, driven by higher rental income, revenue recognition from real estate sales, and other revenues. Malls accounted for 69 percent of earnings and delivered P8.1 billion, up 13 percent from P7.2 billion, fueled by increased foot traffic, high occupancy, and growing interest in experiential offerings,” according to SM Investments.

For its portfolio investments, its performance was driven by NEO, which contributed 38 percent of total portfolio income; Philippine Geothermal Production Company, which delivered 36 percent; and Belle Corporation, which contributed 11 percent.

Meanwhile, the total assets of SM Investments stood at P1.7 trillion, while its gearing ratio remained conservative with 31 percent net debt to 69 percent equity.