SM Investments Achieves 8% Growth in H1 Net Income Driven by Robust Consumer Demand

SM Investments Reports Solid Growth in 2026 First Half

SM Investments Corporation (SM) has reported a remarkable 8% surge in its consolidated net income for the first half of 2026, amounting to PHP45.9 billion. This remarkable growth reflects consumer resilience and robust demand in the market, underscoring the effectiveness of the company's diversified business model.

The financial report highlighted that consolidated revenues for the January to June period climbed by 6%, reaching PHP339.2 billion compared to PHP319.2 billion during the same timeframe last year. Frederic C. DyBuncio, President and CEO of SM Investments, emphasized the company's positive outlook amidst prevailing economic challenges, crediting the healthy consumer spending seen in retail stores and malls.

Mr. DyBuncio stated, "The Filipino consumer was tested during the first half of the year, but our businesses demonstrated resilience. Steady demand across our consumer-led businesses, coupled with substantial contributions from our portfolio companies, illustrate the strength of our diversified business model. This instills confidence in our commitment to long-term growth investments."

Examining the components of net income, banking emerged as the largest contributor at 47%, followed by property at 27%, retail at 15%, and portfolio investments at 11%. The retail segment reported a 5% increase in net income, totaling PHP8.9 billion, alongside a 12% rise in operating income, reaching PHP14.0 billion. This highlights SM's capacity to manage expenses efficiently within a higher inflation context.

The retail sector exhibited promising trends, particularly in food retail, where steady sales growth was recorded across supermarkets and minimarts. Specialty retail also saw higher sales, backed by demand in categories such as Home, Other Fashion, and Kids. Notably, increased interest in home power source alternatives significantly contributed to growth in the Home category, while other categories thrived due to spending on fashion items and children's products, including toys and stationery.

The group's mall business reflected similar consumer demand, with revenues seeing an 8% increase to PHP41.8 billion, attributed to higher occupancy rates, increased tenant sales, and enhanced operational efficiency. SM’s banking segment showcased mid-teens loan growth, solidifying its position as the foremost earnings contributor, indicative of its strong core banking franchise.

In terms of portfolio investments, performance improved significantly, driven by a rebound in Atlas Consolidated Mining and Development Corporation, which benefitted from rising copper prices. Meanwhile, 2GO Group, Inc. saw growth in multiple segments, particularly the travel sector, alongside heightened logistics volumes due to online shopping trends. Revenue increases were also reported for Philippine Geothermal Production Company, Inc., which experienced positive adjustments owing to fluctuations in energy prices.

With total assets reported at PHP1.82 trillion, SM boasts a conservative financial structure with a commendable mix of 31% net debt and 69% equity. Mr. DyBuncio expressed optimism for the second half of the year while remaining cautious of macroeconomic uncertainties. He stated, "Our diversified portfolio, prudent balance sheet, and disciplined capital allocation position us favorably to continue investing in the Philippines and fostering long-term value for our customers, communities, and shareholders."

About SM Investments Corporation

SM Investments Corporation is a leading enterprise in retail, banking, and property, actively engaging in significant growth prospects within the Philippine economy. Known for its comprehensive retail operations, which are the largest in the nation, SM also owns SM Prime Holdings, Inc.—the foremost integrated property developer in the country. Furthermore, SM’s banking engagements include BDO Unibank, Inc., the largest bank in the Philippines, alongside China Banking Corporation, one of the nation's top private domestic banks. For further details, please visit SM Investments.