BUSINESS
SMIC’s H1 net income rises 8% to P45.9B
Banking remained SM Investment Corp.’s largest earnings contributor, accounting for 47 percent of group net income, followed by property at 27 percent, retail at 15 percent and portfolio investments at 11 percent. Consumer spending, despite recent economic shocks, remained healthy, according to SMIC president and CEO Frederic C. DyBuncio. ‘The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient.’
SM Investments Corp. (SMIC) posted an eight percent increase in its first-half of the year net income to P45.9 billion as resilient consumer demand helped sustain growth despite economic challenges, while the conglomerate maintained a conservative balance sheet to navigate changing conditions.
SMIC economist Robert Dan Roces said the group adjusts its strategy based on the direction of the economy while keeping its balance sheet conservative.
Conservative balance sheet
“So what we try to do is to be able to recognize where the economy is going. Then we adjust from there. But all in all, it’s actually having a very conservative balance sheet in order for us to be able to ride the tide, so to speak,” Roces told the DAILY TRIBUNE during an exclusive interview on Wednesday.
Roces’ remarks came as SMIC reported consolidated revenues of P339.2 billion for January to June, up six percent from P319.2 billion a year earlier.
SMIC president and CEO Frederic DyBuncio said consumer spending across the group’s retail stores and malls remained healthy despite recent economic shocks.
Healthy consumer spending
“Consumer spending in our retail stores and malls remained healthy despite recent economic shocks,” DyBuncio said.
“The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient,” he added, citing steady demand across the group’s consumer-led businesses and solid contributions from its portfolio companies.
Banking remained SMIC’s largest earnings contributor, accounting for 47 percent of group net income, followed by property at 27 percent, retail at 15 percent, and portfolio investments at 11 percent.
SM Retail posted a percent increase in net income to P8.9 billion, while operating income climbed 12 percent to P14 billion, driven by resilient demand for everyday essentials and continued expansion of the group’s store network.
The group’s mall business also posted an 8 percent increase in revenues to P41.8 billion, supported by higher occupancy, stronger tenant sales and improved operational efficiency.
Total assets
SMIC’s total assets reached P1.82 trillion, with a capital structure of 31 percent net debt and 69 percent equity, underscoring the group’s conservative financial position.
Looking ahead, DyBuncio said SMIC remains positive on the second half while keeping an eye on macroeconomic risks.
Positive outlook for second half of 2026
“We remain positive about the outlook for the second half of the year, while staying mindful of macroeconomic uncertainties,” he said.