#Philippines #SM Investments #Pasay City #BDO Unibank #SM Prime

SM Investments: Financial Performance Overview for Nine Months of 2025

SM Investments Corporation (SM Investments) has reported a consolidated net income of PHP64.4 billion for the first nine months of 2025, reflecting a solid increase of 6% compared to PHP60.9 billion during the same period in the previous year. This growth indicates the company's resilient performance despite facing various challenges, including adverse weather conditions and flooding.

In terms of revenues, SM Investments witnessed a 4% year-on-year rise, reaching PHP482.3 billion, compared to PHP462.5 billion from the previous year. Frederic C. DyBuncio, the President and CEO, expressed confidence in the company's financial outcomes, noting that the third-quarter performance aligned with their expectations even amid challenging scenarios. He pointed out that although external factors could affect overall economic growth, the outlook remains optimistic as they move forward into the final quarter of the year.

Sector Contributions to Income

The breakdown of net income revealed that banking operations accounted for the largest share, contributing 50% to the total income, followed by property at 28%, retail at 15%, and portfolio investments at 7%.

Retail Sector Performance

Analyzing the retail segment, SM Retail's net income for the period stood at PHP12.2 billion, a slight decrease from PHP12.8 billion in the previous period. Despite this minor decline, retail revenues grew by 5%, reaching PHP318.1 billion, up from PHP301.8 billion. DyBuncio noted that the earlier school opening in June shifted some spending from the third to the second quarter, but specialty retail showed growth in the health and beauty, fashion, and kids' categories. Furthermore, essential spending helped bolster growth in food retail, with department store revenues rising by 3% in the fashion and kids' sectors.

Banking Sector Developments

In the banking vertical, BDO Unibank, Inc. reported a net income of PHP63.1 billion, marking a 4% increase from last year’s PHP60.6 billion. This growth was propelled by a strong performance across core business segments, with net interest income increasing by 8% due to a 14% rise in gross customer loans totaling PHP3.5 trillion. Meanwhile, China Banking Corporation also recorded impressive results, posting a 10% increase in net income to PHP20.2 billion and a 15% growth in net interest income to PHP53.5 billion.

Property Sector Insights

Looking at SM Prime Holdings, Inc., it reported a profit of PHP37.2 billion for the nine months, a 10% increase from the same period last year. This growth was primarily driven by the positive performance of its mall and convention center divisions, with total revenues rising by 4% to PHP103.4 billion. The mall operations, contributing 59% of total revenues, increased by 7% as new leasable spaces were added. Although the residential segment saw a slight decrease, other revenue streams like hotels and convention centers experienced robust growth, highlighting the diversified income portfolio of SM Prime.

Portfolio Investments and Future Outlook

In portfolio investments, the performance was robust, particularly from the Philippine Geothermal Production Company, which accounted for 30% of the total portfolio income. The financial stability of SM Investments is also supported by a solid balance sheet, with total assets increasing by 4% to PHP1.8 trillion and a conservative gearing ratio of 31% net debt to 69% equity.

SM Investments Corporation continues to establish itself as a key player in the Philippine economy, actively investing in significant sectors that promise growth, including retail, banking, and property. With its diverse business operations, the company remains optimistic and poised for further developments as it heads towards the last quarter of the year. For more details, interested parties can visit SM Investments Corporation's official website.