SM group’s Jan-Sept net profit jumps 26%

The country’s largest conglomerate SM Investments Corp. (SMIC) 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.

However, the nine-month profit of its 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 16 standards, under which a right-of-use asset is recognized and amortized over the lease term while interest expense is incurred on the lease liability.

China Banking Corp. reported a nine-month consolidated net income of P6.7 billion, up by 21 percent. Net interest income rose by 9 percent year-on-year to P18.7 billion while its loan portfolio expanded by 10 percent to P552.5 billion.

In the first nine months, banks accounted for 44 percent of SM’s net earnings, followed by property, 39 percent and retail, 17 percent. —DORIS DUMLAO-ABADILLA