SM Investments' nine-month profit climbs 9% to P70.2B

SM Investments Corp. reported a 9 percent increase in consolidated net income to P70.2 billion in the first nine months of 2026, supported by resilient consumer spending, banking growth and stronger earnings from portfolio investments.

The parent company of the SM Group said Wednesday, 11 November, that net income rose from P64.4 billion in the same period last year, while consolidated revenue increased 5 percent to P506.8 billion from P482.3 billion.

“Ongoing resilient consumer demand supported retail and malls, while portfolio investments delivered stronger earnings,” SM Investments President and CEO Frederic DyBuncio said.

Banking remained the largest contributor to consolidated net income at 48 percent, followed by property at 26 percent, retail at 15 percent and portfolio investments at 11 percent.

SM Retail posted a 7 percent increase in net income to P13.1 billion, while revenue grew 5.4 percent to P335.3 billion.

The company attributed the growth to continued consumer spending across its food and specialty retail businesses.

Food retail maintained steady sales growth across supermarkets and minimarts, driven by demand for essential goods.

Specialty retail also recorded higher sales, supported by demand for alternative power sources and discretionary purchases, particularly toys, stationery and pet products.

Meanwhile, revenue from the group's mall operations increased 10 percent to P63.7 billion, driven by additional leasable space, higher occupancy and demand for dining and entertainment.

Banking, investments support earnings

The group's banking businesses also reported loan growth during the period.

BDO Unibank's loan portfolio expanded 16 percent, with double-digit increases across all segments, while China Banking Corp. recorded a 19 percent rise in net loans.

Portfolio investments contributed 11 percent of SM Investments' consolidated net income, supported by improved performances across several businesses.

Atlas Consolidated Mining and Development Corp. recorded an earnings turnaround as higher copper prices boosted its operations.

Logistics and transportation company 2GO Group posted 15 percent revenue growth, led by sea travel and container services.

Philippine Geothermal Production Co. also reported a 13 percent increase in revenue, driven by higher steam prices linked to the Wholesale Electricity Spot Market.

Stronger cash position

SM Investments said its diversified businesses continue to generate stable cash flows, allowing the parent company to pursue long-term investments while maintaining shareholder returns.

More than 60 percent of the parent company's annual cash flows come from nonlisted businesses, including SM Retail, in addition to dividends from its publicly listed subsidiaries.

The company said its established businesses finance their own operations and expansion programs without requiring additional funding from the parent.

SM Investments also plans to increase shareholder returns through higher dividends and an active share buyback program.

Total assets reached P1.8 trillion as of 30 September 2026, with a net debt-to-equity ratio of 31:69.

“At the parent, we continue to allocate capital carefully and maintain the financial capacity to invest for the long term,” DyBuncio said.