SM INVESTMENTS Corp. (SMIC) reported a 26% growth in consolidated net income in the first nine months of the year, thanks to strong profits of its units led by BDO Unibank, Inc.
The holding firm of the Sy family posted a net income of P33.1 billion as of end-September, up 26% from a year ago.
This was driven by a 14% increase in revenues to P350.7 billion, as its business groups delivered positive results for the nine-month period.
The company did not disclose third-quarter results.
The banking business accounted for 44% of SMIC’s reported net profit. BDO’s earnings surged 49% to P32.1 billion, while China Banking Corp.’s income increased 21% to P6.7 billion.
Meanwhile, the property segment recorded a consolidated net income of P27.6 billion, 18% higher from last year. The segment, which is operated by SM Prime Holdings, Inc., also saw 14% higher revenues at P85 billion.
The growth came mainly from the sustained performance of its mall business, whose revenues grew 8% to P42 billion in the nine-month period. SM Development Corp.’s reservation sales also increased 26% to P31.9 billion.
The retail business, under SM Retail, Inc., saw a net income of P7.8 billion, lower by 1% as a result of the implementation of the Philippine Financial Reporting Standards (PFRS) 16 which took effect this year. “Excluding the impact of PFRS 16, net income grew by 8%,” SMIC said.
SM Retail’s revenues rose 12% to P253.9 billion during the nine-month period. The business segment covers the food and non-food business of the SM group, which are both under SM Retail, Inc.
Total stores of SM Retail stood at 2,693 at the end of September, comprised of 64 The SM Stores, 1,565 specialty retail stores, 58 SM Supermarkets, 51 SM Hypermarkets, 199 Savemores, 56 WalterMarts and 700 Alfamart stores.
“Our core businesses continue to deliver notable performance led by banking and property. We are satisfied with our financial results as these reflect the continued growth in our core businesses,” SM President Frederic C. DyBuncio was quoted as saying in a statement.
Shares in SMIC fell 34 points or 3.12% to close at P1,057 per share on Wednesday. — Denise A. Valdez