SM Investments Corp. (SM) posted an 8 percent increase in consolidated net income to P45.9 billion in the first half, from P42.6 billion a year earlier, as resilient consumer spending and solid contributions from its diversified businesses supported earnings growth.

The company reported on Wednesday that consolidated revenues for the January-to-June period rose 6 percent to P339.2 billion, from P319.2 billion in the same period last year.

SM said consumer spending at its retail stores and malls remained healthy despite economic pressures during the first half, while its banking and portfolio investments also delivered solid contributions.

“Consumer spending in our retail stores and malls remained healthy despite recent economic shocks,” SM Investments President and Chief Executive Officer Frederic C. DyBuncio said.

“The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient. Steady demand across our consumer-led businesses plus solid contributions from our portfolio companies continue to reflect the strength of our diversified business model,” he added.

Banking remained the conglomerate’s largest earnings contributor, accounting for 47 percent of net income, followed by property at 27 percent, retail at 15 percent and portfolio investments at 11 percent.

SM said its banks posted mid-teens loan growth during the period, underscoring the strength of their core banking businesses.

SM Retail, meanwhile, reported a 5 percent increase in net income to P8.9 billion, while operating income climbed 12 percent to P14 billion as the company managed expenses amid higher inflation.

The retail business benefited from resilient demand for everyday essentials and the continued expansion of its store network. Food retail recorded steady sales growth across its supermarket and minimart formats.

Specialty retail also posted higher sales, led by the Home, Other Fashion and Kids categories. Demand for alternative power sources supported the Home segment, while Kultura and Crocs led growth in Other Fashion. Spending on toys, pets and stationery boosted the Kids category.

Consumer demand was also evident in SM’s mall operations, where revenues increased by 8 percent to P41.8 billion, driven by higher occupancy, stronger tenant sales, and improved operational efficiency.

Portfolio investments delivered stronger results, led by a turnaround at Atlas Consolidated Mining and Development Corporation as higher copper prices supported its performance.

2GO Group, Inc. recorded revenue growth across its businesses, driven by higher passenger volumes in its travel segment and increased logistics volumes from online purchases. Philippine Geothermal Production Company, Inc. also posted higher revenues following adjustments in energy prices.

SM said its scale and exposure to different segments of the consumer-driven economy allow it to generate recurring cash flows and continue allocating capital toward expansion and long-term growth.

The conglomerate ended the first half with P1.82 trillion in total assets, with its capital structure consisting of 31% net debt and 69% equity.

DyBuncio said SM remains positive about its prospects for the remainder of the year, while remaining cautious about broader economic uncertainties.

“We remain positive about the outlook for the second half of the year, while staying mindful of macroeconomic uncertainties,” he said.

“Our diversified portfolio, prudent balance sheet and disciplined approach to capital allocation position us well to continue investing in the Philippines and creating long-term value for our customers, communities and shareholders.”