SM Investments Corporation (SM Investments) posted a consolidated net income of PHP20.1 billion in the first quarter of 2025, marking a 9 percent increase from PHP18.4 billion in the same period last year.
Consolidated revenues for the January to March period rose 6 percent to PHP152.0 billion, up from PHP143.7 billion in the first quarter of 2024.
“We are encouraged by the positive start to 2025. Consumer confidence remains good and our businesses are well-positioned to serve in all categories. Positive sentiment is supported by falling inflation, which was at 1.4 percent in April,” said Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments.
“We continue to monitor uncertainties in the global macroeconomic environment, but remain positive about the Philippines. SM remains focused on serving and enabling our local customers and stakeholders,” Mr. DyBuncio said.
Banking accounted for 51 percent of reported net earnings, followed by property at 29 percent, retail at 14 percent and portfolio investments at 6 percent.
Retail
SM Retail’s net income grew 18 percent to PHP3.6 billion from PHP3.1 billion in the same period last year. Revenues were up 7 percent to PHP100.3 billion from PHP93.5 billion.
Revenues for food retail increased 8 percent to PHP61.5 billion driven by improved margins in SM Markets. In non-food retail, revenues of the department store business rose 6 percent to PHP23.5 billion. Revenues for specialty retail grew 7 percent to PHP21.8 billion driven by spending across all categories. Discretionary spending was strongest in the health & beauty and fashion categories.
Banking
BDO Unibank, Inc. reported net income increased to PHP19.7 billion from PHP18.5 billion in the same period last year supported by the double-digit growth in loans and a solid performance in fee income.
China Banking Corporation sustained its momentum from strong core business growth, posting PHP6.5 billion in net income, up 10 percent from the same period last year. Net interest income increased by 14 percent to PHP17.1 billion, driven by higher asset yields and loan volume which offset increased interest expenses.
Gross loans hit PHP954 billion, up 19 percent on brisk lending to businesses and consumers. On the funding side, the bank generated 8 percent more deposits to PHP1.3 trillion, underpinned by the sustained increase in checking and savings accounts (CASA) and time deposits.
Property
SM Prime Holdings, Inc. (SM Prime) reported net income grew 11 percent to PHP11.7 billion from PHP10.5 billion in the same period last year, driven by steady revenue growth, margin improvement and disciplined cost management.
Total revenues rose 7 percent to PHP32.8 billion from PHP30.7 billion due to higher rental income, revenue recognition from real estate sales and other revenues.
Malls accounted for 69 percent of earnings and delivered PHP8.1 billion, up 13 percent from PHP7.2 billion, fueled by increased foot traffic, high occupancy and growing interest in experiential offerings.
Residential earnings rose 4 percent to PHP2.1 billion from PHP2.0 billion, accounting for 18 percent of net income. The upturn was supported by higher revenue recognition from completed projects and prior-year sales.
The office and warehouse segment contributed 10 percent to total net income, with earnings rising 15 percent to PHP1.2 billion from PHP1.0 billion last year. Stronger occupancy and prudent cost management contributed to the improved performance.
Hotels and convention centers contributed 3 percent, posting a 17 percent increase to PHP362 million from PHP309 million, owing to strong room bookings and a robust calendar of MICE events.
Portfolio Investments
The portfolio investments’ performance was driven by NEO which contributed 38 percent of total portfolio income, Philippine Geothermal Production Company which delivered 36 percent and Belle Corporation which contributed 11 percent.
Total assets of SM Investments stood at PHP1.7 trillion. Gearing ratio remained conservative with 31 percent net debt to 69 percent equity.
