SMIC posts P64B profit, weathers floods

Sy family-led SM Investments Corp. posted a nine-month net income of P64.4 billion, up 6 percent from P60.9 billion a year ago, as resilient banking, retail, and property operations helped the conglomerate weather flooding and other challenges, with consolidated revenues rising 4 percent to P482.3 billion.

“Despite the challenges brought about by adverse weather and flooding, we continued to see resilient financial performance across our businesses,” SM Investments President and Chief Executive Officer Frederic C. DyBuncio said Wednesday.

“While external factors may temper overall economic growth, we maintain an optimistic outlook as we move into the fourth quarter,” he added.

Banking contributed the largest share of net income at 50 percent, followed by property at 28 percent, retail at 15 percent, and portfolio investments at 7 percent.

SM Retail posted net income of P12.2 billion, slightly lower than P12.8 billion a year earlier, although revenues grew 5 percent to P318.1 billion. 

“The earlier school opening in June this year pushed some spending from the third to the second quarter. Despite this shift, specialty retail spending grew in the health and beauty, fashion and kids categories while essential spending continued to prop up growth for food retail," DyBuncio said. 

Department store revenues rose 3 percent in the fashion and kids segments, food retail grew 7 percent, and specialty retail revenues were up 4 percent, driven by growth in kids and home categories.

BDO Unibank, Inc. recorded net income of P63.1 billion, a 4 percent increase from P60.6 billion, driven by sustained performance in its core businesses. 

Net interest income rose 8 percent as gross customer loans climbed 14 percent to P3.5 trillion, while deposits expanded 10 percent with a CASA ratio of 67 percent. Asset quality remained stable with a non-performing loan (NPL) ratio of 1.77 percent and NPL coverage at 134 percent. 

China Banking Corp. reported net income of P20.2 billion, up 10 percent year-on-year, supported by robust growth in net interest income, which rose 15 percent to P53.5 billion, and a 14 percent increase in gross loans to P994.0 billion. Deposits grew 9 percent to P1.4 trillion, with NPL coverage at 123 percent.

SM Prime Holdings, Inc. posted a nine-month net income of P37.2 billion, up 10 percent from P33.9 billion, driven by higher contributions from malls and convention centers. Total revenues rose 4 percent to P103.4 billion, with mall revenues increasing 7 percent to P61.0 billion due to additional leasable space and tenants. 

Hotels and convention centers grew 9 percent to P6.0 billion, while residential revenues eased 2 percent to P32.6 billion and office and warehouse revenues remained steady at P4.0 billion. 

Portfolio investments were led by Philippine Geothermal Production Company, which contributed 30 percent of total portfolio income, followed by NEO at 26 percent and 2GO at 12 percent, with 2GO’s revenues rising 6 percent and net income surging 65 percent on strong travel and logistics performance. 

Total assets of SM Investments rose 4 percent to P1.8 trillion, with a conservative gearing ratio of 31 percent net debt to 69 percent equity.