SM Investments Corp. nets P23B in first half of 2019
MANILA, Philippines — The country’s largest conglomerate SM Investments Corp. (SMIC) saw a 27 percent year-on-year increase in first-semester net profit to P23 billion, led by higher earnings from its banking and property businesses.
“We delivered a strong first half, underpinned by remarkable bank earnings and robust residential take-up. Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart,” SMIC president and chief executive officer Frederic DyBuncio said in a disclosure to the Philippine Stock Exchange on Wednesday.
The property and banking businesses accounted for 41 percent and 40 percent of SMIC’s net income while retail contributed 19 percent.
Group-wide revenues rose by 14 percent year-on-year to P233.7 billion in the first semester.
SM Retail posted P5.7 billion in net profit for the first six months, flat from the same period last year. While revenues grew by 13 percent year-on-year to P169.8 billion, SM Retail had to make adjustments based on the Philippine Financial Reporting Standards (PFRS)16, under which a right-of-use asset is recognized and amortized over the lease term while interest expense is incurred on the lease liability. Excluding the adjustments due to the adoption of PFRS16, retail net income grew by 10 percent year-on-year to P6.3 billion.
Meanwhile, it was earlier reported that property arm SM Prime Holdings grew net profit in the first semester by 16 percent year-on-year to P19.3 billion on higher earnings across its shopping mall, residential development, office, and hotel businesses.
Banking arm BDO Unibank also grew its net profit in the first semester by 54 percent year-on-year to P20.2 billion on stronger earnings from its lending, fee-based and treasury businesses.
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