MANILA, Philippines – The country’s largest conglomerate SM Investments Corp. (SM) grew its net profit in the first nine months by 26 percent year-on-year to P33.1 billion on higher earnings from its property and banking businesses.
On the other hand, January to September net profit from the retail business under SM Retail Inc. declined by 1 percent year-on-year to P7.8 billion due to the shift to 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.
“Our core businesses continue to deliver notable performance led by banking and property. We are satisfied with our financial results as these reflect the continued growth in our core businesses,” SM president Frederic DyBuncio said in a disclosure to the Philippine Stock Exchange on Wednesday.
For the period year-to-date ending September, banks accounted for 44 percent of SM’s reported net earnings, followed by property at 39 percent and retail at 17 percent.
Consolidated revenues went up by 14 percent year-on-year to P350.7 billion for the first nine months. /gsg