Pandemic impact: SMIC reports 48 percent net profit drop
MANILA, Philippines—The country’s largest conglomerate, SM Investments Corp. (SMIC), saw a 48 percent drop in net profit in 2020 to P23.4 billion as the COVID-19 pandemic dragged down earnings from its core property, retailing and banking businesses.
Property arm SM Prime booked a 52.7 percent decline in net profit to P18 billion, while net profit from SM Retail Inc. fell by 67 percent to P4.1 billion.
The banking and property businesses accounted for 55 percent and 33 percent of net income while retail contributed 12 percent.
It was earlier reported that banking arm BDO Unibank’s net profit fell by 36.2 percent in 2020 to P28.2 billion due to a much larger provision set aside for probable loan delinquencies.
China Banking Corp., on the other hand, booked a net income of P12.1 billion, 20 percent higher.
“Our businesses continued to build momentum through the end of 2020 as they addressed the changed behaviors and needs of our customers,” said SM president Frederic DyBuncio in a diclosure to the Philippine Stock Exchange on Friday (Feb. 26).
“Our banks, food retailing and residential property all performed well, while our malls and non-food retail operations showed steady improvements as conditions allowed,” he said.
“We continue to innovate and focus on safety and are cautiously optimistic about the year ahead,” he added.
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