MANILA -The Sy family-led conglomerate SM Investments Corp. said first semester 2023 profits surged 32 percent on bigger contributions from core businesses, led by banking and real estate.
The company said net income from January to June reached P36.5 billion versus P27.7 billion in the same period in 2022.
“SM delivered strong results in the first half, driven by solid consumer sentiment on the back of a positive economic environment. Our performance was driven by fundamental demand, without the added benefit of post-pandemic ‘revenge spending’ that contributed to last year’s results,” SM Investments president and CEO Frederic C. DyBuncio said in a statement on Wednesday.
The group ended with total revenue of P286.3 billion, up 18 percent over the same period last year.
SM Investments owns BDO Unibank and China Banking Corp., among the country’s top lenders, and real estate giant SM Prime Holdings. It also owns a vast retail chain and various portfolio investments such as 2GO Group and Philippine Geothermal Production Co.
Contributions from banking accounted for 47 percent of total earnings during the first semester, followed by property (26 percent) and retail (17 percent). Portfolio investments contributed 10 percent.
“We experienced robust consumer confidence, consistent with the Philippines’ overall economic growth, record low unemployment and improving inflation environment. This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters,” DyBuncio noted in the statement.
During the first six months of the year, BDO booked a 47-percent surge in profit to P35.2 billion while China Bank ended with a net income of P10.8 billion, up 7 percent.
SM Retail’s income grew 21 percent to P8.4 billion as robust consumer demand sustained growth.
“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence,” DyBuncio said.
SM Prime’s net income jumped 38 percent to P19.4 billion as mall revenues surged 53 percent.
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