SY family-led conglomerate SM Investments Corp. (SMIC) saw its consolidated net income for the first nine months of 2024 grow 9 percent to P60.9 billion from P55.9 billion a year ago.
“We continued to see good growth across our businesses in the third quarter, particularly in banking,” SM President and Chief Executive Officer Frederic DyBuncio said on Wednesday.
Revenues during the period grew 5 percent year on year to P462.5 billion.
SMIC said that its banking segment accounted for the largest income share at 50 percent, followed by property (27 percent), retail (15 percent) and portfolio investments (8 percent).
BDO Unibank Inc. posted a net profit of P60.6 billion for January-September, boosted by steady growth in its core intermediation and fee-based businesses, while China Banking Corp. saw a 13-percent jump in consolidated net income to P18.4 billion.
SM Prime’s consolidated net income climbed 12 percent to P33.9 billion as revenue from its mall, residential and other key businesses increased by 8 percent to P99.8 billion.
The mall business booked P56.5 billion in revenue, the residential business generated P32.1 billion, up 9 percent, while other businesses, such as offices, hotels and convention centers generated another P11 billion in revenue.
SM Retail, however, reported a lower net income of P12.8 billion from P13.7 billion a year ago despite a 4-percent rise in retail revenues to P301.8 billion.
No clear explanation was given for the lower net income, although SMIC said that department store performance “saw normalization of margins, which remain higher than pre-pandemic levels,” while both food retail and specialty store performance remained positive.
Portfolio investments contributed positively to group net income, with 2Go Group Inc. posting revenue growth of 14 percent on a resurgence in tourism, while Atlas Consolidated Mining and Development Corp. saw its revenues rise 7 percent on higher copper and gold prices.
The Sy-led conglomerate’s total assets grew 4 percent to P1.7 trillion as of end-September 2024, with its gearing ratio remaining conservative “with 32-percent net debt to 68-percent equity.”
“An improving macroeconomic environment should help both our businesses and consumers moving forward,” DyBuncio said.
SMIC shares on Wednesday were down P17.00, or 1.85 percent, at P900 each amid a 1.41-percent fall for the benchmark Philippine Stock Exchange index.
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