SM: Where purpose and passion enable progress

Written by: Tina Arceo-Dumlao

SM Investments Corporation (SM Investments), the Sy family-led conglomerate considered a bellwether of Philippine enterprise, continues to prove that sustained growth is best built on purpose, discipline, and responsible stewardship.

At the end of September 2025, SM Investments posted a consolidated net income of P64.4 billion, a 6-percent increase from P60.9 billion in the same period last year.

Banking, through BDO Unibank and China Banking Corp., accounted for the largest share at 50 percent, followed by property through SM Prime Holdings (28 percent), retail through SM Retail (15 percent), and portfolio investments in energy, logistics and other ventures (7 percent).

But behind the steady financial performance lies a deeper story, one about leadership guided by purpose and a commitment to create value for stakeholders responsibly. For SM, growth is not just measured in earnings, but in the trust and confidence it continues to build among the communities it serves.

Governance as the Cornerstone of Trust

“In today’s environment where trust and transparency are paramount, we continue to strengthen our governance culture across the organization,” said Amando M. Tetangco Jr., SM Investments chair and former Bangko Sentral ng Pilipinas governor.  

Notably, Mr. Tetangco is the first independent director to be elected chair in the company’s history.  His appointment in 2023 marked a turning point that underscored SM’s prioritization of professionalism, expertise, and independent leadership, signaling how seriously it takes its responsibility to balance growth with accountability.

Across its subsidiaries, SM’s boards are deliberately structured to blend institutional experience with independent judgment. Out of nine directors, five independent directors are non-family members and two are female, including respected business leaders former Trade Secretary Ramon M. Lopez, Marife B. Zamora, co-founder of the Filipina CEO Circle, Robert G. Vergara former President, General Manager and Vice-Chairman of the Board of Trustees of pension fund Government Service Insurance System, and Lily K. Gruba, a Professor on Taxation Law, Mergers and Acquisitions and Local Government Finance and former Director of the Philippine Economic Zone Authority, Overseas Workers Welfare Administration, and Undersecretary of the Department of Finance.

SM’s corporate governance manual mandates that at least three board members or such number as to constitute at least one-third of the members of the board, whichever is higher, be independent directors, free from management duties, material ties, or substantial shareholdings that could interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Their task: to encourage impartial discussions at board meetings, monitor and provide feedback on Management’s performance, and safeguard the interests of the Company’s various stakeholders.

This structure, combining continuity with independence, equips SM to adapt effectively to evolving market dynamics while staying anchored to its principles of fairness, integrity, and inclusion.

Leadership Anchored on Merit and Inclusion

“Ideally, the perfect meritocracy is blind to and independent of issues of gender, background and race,” said Atty. Gruba. “This is the next level to aspire for in any organization—that it is composed of persons of merit, not just a collection of diverse personalities.”

At SM, that aspiration is already taking shape. Women make up 64 percent of its total workforce, with 58 percent holding senior leadership roles, a clear reflection of its belief that inclusion and equal opportunity are vital to performance and progress.

“Empowering women through equal opportunity and meritocracy drives performance and promotes growth of organizations,” noted Elizabeth Anne C. Uychaco, executive vice president for corporate services / corporate governance and Group Diversity Officer.

Stewardship that Endures

SM’s governance culture has earned continued recognition, including back-to-back 5 Golden Arrow Awards from the Institute of Corporate Directors, the highest distinction in this awards program focused on corporate governance excellence.

“This recognition reinforces our collective commitment to sustaining a culture of integrity, accountability, and responsible stewardship,” according to Tetangco.

Through decades of transformation, SM has evolved from a family-run enterprise into a diversified group that anchors progress in governance, inclusion, and shared prosperity. It is this foundation where purpose and passion enable progress that ensure SM’s leadership is credible and its growth and future remains sustainable.

Creating value responsibly is not just a statement of intent for the SM group. It is a daily practice and perhaps, its truest measure of success.

SM Investments Corporation (SM Investments) once again earned the prestigious 5 Golden Arrow Award from the Institute of Corporate Directors (ICD), marking its second consecutive year of achieving the highest distinction in corporate governance excellence. From left to right: Atty. Benedicta Du-Baladad, ICD Chairperson; Amando M. Tetangco, Jr., SM Investments Chairman; Atty. Francis Ed. Lim, Securities and Exchange Commission Chairman; Ida Ceniza-Tiongson, ICD Vice Chairperson.

SM is committed to equal opportunity in the workplace, as evident with 64 percent of the workforce being women, and 58 percent of these women holding senior leadership positions.