SMIC nets P42.6B with sustained gains in core businesses
First half 2025 revenues also saw a 6 percent uptick, reaching P319.2 billion from P301.4 billion a year ago. Growth was attributed to continued strength in SMIC’s banking, property, retail, and portfolio investment segments.
As of end-June 2025, SM Investment Corporation’s total assets stood at P1.7 trillion, up two percent from last year. The conglomerate maintained a conservative capital structure, with a gearing ratio of 32 percent net debt to 68 percent equity, positioning it well for continued growth in the second half of 2025.
Photograph courtesy of SMIC
SM Investments Corporation (SMIC) registered a consolidated net income of P42.6 billion in the first half of 2025, reflecting a 6 percent improvement from the P40.2 billion it earned during the same period last year.
Revenues also saw a 6 percent uptick, reaching P319.2 billion from P301.4 billion a year ago. The conglomerate attributed the growth to the continued strength of its banking, property, retail, and portfolio investment segments.
Stable macroeconomic fundamentals
According to SMIC president and chief executive officer Frederic DyBuncio, the company’s positive performance was supported by stable macroeconomic fundamentals. He pointed to solid consumer spending, particularly in malls and retail outlets, as well as upbeat banking activity.
DyBuncio also cited the country’s 5.4 percent GDP growth in the first quarter and easing inflation levels — now at their lowest since 2019 — as favorable indicators for business expansion.
“We continue to see steady growth across our core businesses, supported by favorable macroeconomic conditions in the Philippines,” he said.
Banking
Banking remained SMIC’s top profit center, accounting for 50 percent of net earnings. Property followed with 28 percent, retail with 15 percent, and portfolio investments with 7 percent.
Retail operations delivered a 10 percent increase in net income to P8.4 billion from P7.6 billion, as revenues grew 8 percent to P211.8 billion. Higher sales in food, non-food, and specialty retail segments fueled the gain.
Department stores benefited from the shift in the school opening to the second quarter, posting an 11 percent revenue rise.
Specialty retail improved by 5 percent, driven by demand for back-to-school items, fashion, and health products. Food retail climbed 8 percent to P127.1 billion, backed by store expansions and higher volumes.
BDO Unibank
In banking, BDO Unibank Inc. reported a 3 percent gain in net income to P40.6 billion, powered by a 7 percent increase in net interest income. Gross customer loans expanded by 14 percent to P3.4 trillion, while deposits rose 8 percent, breaching the P4 trillion mark. Asset quality improved with a lower non-performing loan (NPL) ratio of 1.75 percent and 140 percent NPL coverage.
China Banking Corporation also performed strongly, growing its net income by 14 percent to P13.0 billion. Net interest income jumped 15 percent to P34.9 billion, buoyed by increased loan volumes and asset yields. Gross loans hit P964.7 billion, while deposits reached P1.3 trillion, up 5 percent.
The bank maintained a low NPL ratio of 1.6 percent, with P6.5 billion in credit provisions and a 125 percent coverage ratio.
On the property side, SM Prime Holdings Inc. posted a record high net income of P24.5 billion in the first half, up 11 percent year-on-year. Consolidated revenues increased by 5 percent to P68 billion, with rental income accounting for 60 percent. Real estate sales made up 29 percent, and the rest came from cinemas, food and beverage, amusement, and other services.
Malls continued to dominate, contributing P17 billion in earnings, a 14 percent uptick supported by new openings and strong occupancy. Residential income inched up 2 percent to P5.1 billion, while earnings from offices and warehouses rose 9 percent to P1.7 billion.