SM INVESTMENTS Corp. (SMIC) delivered a 27% increase in earnings for the first half of 2019, on the back of its banking unit’s strong performance and higher sales from the residential business.

In a statement Wednesday, the Sy-led conglomerate said net income rose to P23 billion in the first six months of the year, from P18.1 billion in the same period a year ago. Consolidated revenues were also up 14% to P233.7 billion.

“We delivered a strong first half, underpinned by remarkable bank earnings and robust residential take-up. Our retail business continues to do well and we are pleased with the rapid expansion of our mini-mart footprint through Alfamart,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a statement.

Property accounted for 41% of the company’s net income, followed by banking and retail at 41% and 19%, respectively.

Under the property segment, SM Prime Holdings, Inc. grew its net income by 16% to P19.3 billion following a 15% increase in revenues to P57 billion.

Mall revenues, which account for 55% of its business, grew 8% to P31.1 billion. This was driven by the 7% rise in mall rental revenues to P26.2 billion. SM Prime ended the first half with 72 malls in the Philippines and seven in China covering 9.7 million square meters in gross floor area.

Meanwhile, the residential group posted 26% higher revenues at P21.4 billion, benefiting from the launch of several high-rise projects in Metro Manila from 2016 to 2018.

SM Prime’s commercial properties group and hotels and convention centers also grew its revenues by 13% to P4.6 billion in the first half.

For BDO Unibank, Inc., net income surged 54% to P20.2 billion due to the recurring income of its core units and higher fee income. Net interest income also rose by 24% to P56.9 billion, while consumer loans were up by 7% to P2 trillion.

SM Retail, Inc also reported strong growth with a 13% increase in revenues to P169.8 billion. Net income stood at P5.7 billion.

About a quarter of revenues came from specialty retail stores at P42.6 billion, 15% higher year on year.

The retail business currently has 2,600 stores, consisting of 63 The SM Stores, 1,548 specialty stores, 57 SM Supermarkets, 52 SM Hypermarkets, 197 Savemore stores, 55 Waltermart stores, and 628 Alfamart stores. The gross selling area of all department stores alone covers 795,864 sq.m.

SMIC continues to expand its businesses in the country, committing to spend P98 billion in capital expenditures in 2019. Bulk of the budget or P80 billion will go to SM Prime, while about P9-12 billion will be for the banking units. SM Retail cornered about P5 billion.

Shares in SMIC jumped 3.13% or P30 to close at P990 each at the stock exchange on Wednesday. — Arra B. Francia

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