SM Investments Corporation (SM Investments), the holding company of the SM group, reported a 10 percent increase in its consolidated net income to PHP90.5 billion in 2025 from PHP82.6 billion last year. Consolidated revenues also grew 4% to PHP681.7 billion from PHP654.8 billion last year.
“Our strong fourth quarter performance reinforced our full year results,” said Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments. “This reflected resilient consumer spending, improved operational efficiencies and prudent financial management across our core businesses.”
Banking contributed the largest share of consolidated net income at 49 percent, followed by property at 27 percent, retail at 18 percent and portfolio investments at 6 percent.
“Looking ahead, we remain optimistic about the Philippine growth outlook, supported by easing inflation, steady employment, stable interest rates and sustained remittance flows that underpin household incomes and provincial market expansion. The Group will maintain its expansion strategy and disciplined capital allocation, while continuing to strengthen its ecosystem to serve more customers across the country,” Mr. DyBuncio added.
Retail
SM Retail reported net income was slightly up 1 percent to PHP21.1 billion. Retail revenues grew 5 percent to PHP458.1 billion from PHP434.5 billion last year.
“Department store growth remained steady, driven by strong performance in the kids category in the fourth quarter. Food retail benefitted from sustained spending on essential items. Specialty retail spending saw growth across health and beauty, fashion, kids and home categories, while the stationery section performed well due to increased gadget purchases,” Mr. DyBuncio observed.
Department store revenues grew 3 percent while food retail revenues increased 7 percent. Specialty retail revenues rose 4 percent.
Banking
BDO Unibank, Inc. (BDO) delivered a record net income of PHP87.2 billion, an increase by 6 percent from PHP82.0 billion last year driven by the solid performance of its core businesses.
Net interest income grew by 9 percent as gross customer loans climbed by 13 percent to PHP3.7 trillion, supported by double-digit growth across all market segments. Total deposits expanded by 10 percent, with a Current Account/Savings Account (CASA) ratio of 68 percent.
Asset quality improved, with Non-Performing Loan (NPL) ratio declining to 1.68 percent. NPL coverage was at 133 percent.
China Banking Corporation reported net income grew 13 percent to a record PHP28 billion driven by the bank’s core businesses. The bank’s core lending business served as the main driver with interest income climbing 12 percent to PHP105.2 billion.
Gross loans, which hit the PHP1 trillion mark for the first time, increased 13 percent to PHP1.1 trillion on strong demand from both the corporate and consumer segments. Deposits grew 9 percent to PHP1.4 trillion, supported by a current account and savings account ratio of 48 percent.
Non-performing loan (NPL) ratio was steady at 1.6 percent with NPL coverage ratio at 109 percent, well above the industry average.
Property
SM Prime Holdings, Inc. reported its net income expanded to PHP48.8 billion in 2025, up 7 percent from PHP45.6 billion the previous year. Growth was driven by stronger commercial property revenues and disciplined cost management.
Consolidated revenues reached PHP141.1 billion, slightly higher than the PHP140.4 billion in the previous year. The mall segment contributed PHP85.1 billion, accounting for 60 percent of total revenues, followed by residential (30%) at PHP42.5 billion, hotels and convention centers (6%) at PHP8.5 billion, and offices and warehouses (4%) at PHP5.4 billion.
Portfolio Investments
The portfolio investments’ performance was driven by Philippine Geothermal Production Company and NEO buildings, which together contributed 56 percent of total portfolio income, followed by 2GO and Goldilocks, with a combined 20 percent contribution.
Balance Sheet
The total assets of SM Investments increased 7 percent to PHP1.8 trillion. Gearing ratio remained conservative with 30 percent net debt to 70 percent equity.
