SM Investments nets P43B, riding on postpandemic rebound

Sy family-led conglomerate SM Investments Corp. is poised to end 2022 on a high note after booking a profit surge of 50 percent to nearly P43 billion in the first nine months of the year.

SM Investments, which owns the country’s largest banking and shopping mall group, said earnings had been bolstered by the recovery of the economy during the postpandemic period, on top of contributions from a recently acquired power business.

“We continued to gain momentum in our growth this [third] quarter, supported by increased economic activity and strong consumer sentiment,” SM president and CEO Frederic DyBuncio said.

“With encouraging results, we remain confident about sustained growth in the fourth quarter,” he added.

SM’s retail business surpassed prepandemic earnings as net income more than doubled to P11.5 billion from P4.8 billion in the first nine months. Revenues grew 26 percent to P258.1 billion due to the contribution of specialty stores, whose profits surged 139 percent during the period.

“Increasing employment and higher overseas Filipino workers remittances across the country helped fuel spending and we anticipate continued momentum towards the fourth quarter with the resumption of normalized holiday activities,” DyBuncio said.

The conglomerate closed the first three quarters with revenues of P381.9 billion, up 31 percent versus the same period in 2021.

“With the addition of Philippine Geothermal Production Co. and profitable performance across our invested companies, our portfolio investments have also become a meaningful contributor to the group,” DyBuncio said.

SM earlier received approval from the Securities and Exchange Commission to acquire the company that operates the Tiwi and Mak-Ban steam fields in Albay province.

The conglomerate’s banking segment contributed 45 percent to net earnings, followed by property, with a share of 23 percent; retail, 19 percent; and portfolio companies, 13 percent.

SM ended September with total assets of P1.5 trillion and strong balance sheet, with net debt of 38 percent against equity of 62 percent.

SM owns top lender BDO Unibank Inc., which saw net income from January to September climb 23 percent to P40 billion on “solid results across its core businesses.”

Gross customer loans were also up 10 percent, the bulk funded by low-cost current and savings account deposits.

China Banking Corp. saw net income grow 31 percent to P14.7 billion on higher top line and fee income.

SM Prime Holdings Inc., which operates SM Supermalls and housing developer SM Development Corp., reported a net income of P22 billion during the nine-month period, up 41 percent from the same period last year. INQ