SMIC nets ₱60.9B on robust banking biz

SM Investments Corp. (SMIC), the country’s largest conglomerate in terms of market capitalization, booked a 9-percent gain in earnings in the January to September period to reach P60.9 billion, half of which came from the banking business alone as interest rates and inflation eased.

SMIC, led by the Sy family of billionaires, on Wednesday said revenues reached P462.5 billion, up by 5 percent.

READ: SM Investments nets P60.9B

“We continued to see good growth across our businesses in the third quarter,” SMIC president and CEO Frederic DyBuncio said in a statement.

“With inflation easing, we remain positive. An improving macroeconomic environment should help both our businesses and consumers moving forward,” DyBuncio added.

Nine-month earnings

SMIC’s nine-month earnings are equivalent to 79 percent of its record P77-billion full-year bottom line it reported in 2023.

Banking under BDO Unibank Inc., which again registered the highest nine-month earnings in Philippine corporate history, and China Banking Corp. accounted for the biggest share of the income pie at 50 percent. Property contributed 27 percent; retail, 15 percent; and portfolio investments, 8 percent.

READ: BIZ BUZZ: SM is conglomerate of the year

BDO’s net profit during the period in review jumped by 12 percent to P60.6 billion, driven by its core lending and fee-based service businesses.

Net interest income rose by 8.7 percent to P138.27 billion due to a 13-percent expansion in gross consumer loans amid the Bangko Sentral ng Pilipinas’ recent interest rate cut.

Chinabank likewise posted record earnings, which ended at P18.4 billion, up by 13 percent.

Loan portfolio

Its loan portfolio widened by 14 percent to P871.6 billion on the back of higher demand in the business and consumer lending segments.

SM Retail’s net income declined by 6.57 percent to P12.8 billion on modest growth across its business segments.

Retail revenues inched up by 4 percent to P301.8 billion.

Property giant SM Prime Holdings Inc. is likewise close to breaking its full-year net income record after it booked a 12-percent gain at end-September to P33.9 billion.

SM Prime’s revenues reached P99.8 billion, up by 8 percent. Growth was driven by the mall business, which accounted for 57 percent of SM Prime’s total revenues.

Jeffrey Lim, SM Prime president, previously said they planned to spend up to P110 billion next year to expand the company’s mall empire.