#Philippines #SM Investments #Pasay City #Retail Growth #PHP42.6 billion

Overview of SM Investments' Performance in H1 2025

SM Investments Corporation has released its financial results for the first half of 2025, presenting a positive picture of growth across its core businesses. The company reported a consolidated net income of PHP42.6 billion, reflecting a 6% increase from PHP40.2 billion during the corresponding period of 2024. The company's revenues also saw a rise of 6%, amounting to PHP319.2 billion, compared to PHP301.4 billion the previous year. This growth can largely be attributed to the favorable economic conditions prevailing in the Philippines, alongside the performance stability within SM Investments' diverse portfolio.

Key Financial Highlights

Frederic C. DyBuncio, the President and CEO of SM Investments, stated, “We continue to see steady growth across our core businesses, supported by favorable macroeconomic conditions in the Philippines.” The Philippine economy recorded a steady growth rate of 5.4% in the first quarter, while the inflation rate has dropped to its lowest level since 2019, fostering a supportive environment for consumers and businesses alike.

In terms of contribution to earnings, the banking sector emerged as a leading performer, accounting for 50% of the total net earnings. The property sector followed closely with 28%, retail contributed 15%, and portfolio investments made up 7% of the earnings.

Retail Sector Success

The retail segment, particularly, displayed strong growth, with a 10% increase in net income, now reaching PHP8.4 billion, up from PHP7.6 billion. Revenues in retail were also robust, climbing 8% to PHP211.8 billion from PHP196.3 billion. Non-food retail experienced significant growth, especially in department stores which saw an 11% rise in revenues, boosted by the transition of the school opening to the second quarter. Specialty retail recorded a 5% increase, driven by increased spending in the stationery, fashion, and health and beauty categories.

Food retail revenues grew by 8%, reaching PHP127.1 billion, largely thanks to store expansion initiatives and increased consumer demand.

Banking Sector Performance

SM Investments' banking arm, BDO Unibank, Inc., also reported a favorable performance, with net income expanding to PHP40.6 billion, reflecting a 3% increase from PHP39.4 billion during the prior year. The growth was supported by strong operational results across its core activities. On the other hand, China Banking Corporation noted a considerable 14% increase in net income, reaching PHP13.0 billion, driven by growth in its core business operations and a 15% rise in net interest income facilitated by increasing asset yields and loan volumes.

Property Sector Expansion

The property arm, SM Prime Holdings, Inc., disclosed that its net income surged by 11%, achieving an unprecedented PHP24.5 billion. This growth was largely driven by higher rental income, real estate sales, and supplementary revenues, showcasing the effectiveness of SM Prime's expansive strategy within the property sector.

Portfolio Investments

In the realm of portfolio investments, the first half outcomes were notably influenced by the performance of Philippine Geothermal Production Company, which accounted for 35% of total portfolio income. Other contributors included NEO with 30%, followed by 2GO at 16%.

Financial Standing

Ending the first half of the year, SM Investments' total assets were recorded at PHP1.7 trillion, marking a 2% increase. The organization remains on solid financial ground with a conservative gearing ratio of 32% net debt compared to 68% equity, indicating robust financial health and operational sustainability.

Conclusion

SM Investments Corporation continues to be a leading force within the Philippines, dedicated to maximizing growth opportunities across retail, banking, and property. As the company navigates through evolving market dynamics, it remains committed to leveraging its diversified portfolio while contributing positively to the Philippine economy.

For further details on SM Investments, you can visit their official website at www.sminvestments.com.