SMIC builds up H1 profit to P16.6 B

MANILA, Philippines - SM Investments Corp. reported a nine percent growth in net income in the first half to P16.6 billion.

Excluding one-time items in 2016, recurring income increased 16 percent during the period.

The conglomerate, whose businesses include retail, banking and property, registered revenues of P181.6 billion, up seven percent  year-on-year.

SM president Frederic DyBuncio said while 2016 was an election year—which means higher consumer spending–2017 continued to bring in growth opportunities for the company.

“Even without the benefits of an election year, we saw sustained growth across all our core businesses, driven by the strong economy and resilient consumer sentiment. SM will continue to capture this momentum through nationwide expansion and by investing in high growth opportunities,” DyBuncio said.

The property business contributed the most to consolidated net income at 42 percent, followed by banks with 36 percent and retail with 22 percent.

Outside of the core businesses, SM continues to build its portfolio of investments in complementary businesses that will help capture the high growth of the Philippine economy.

Among its equity investments portfolio, Belle Corp. benefited from increased growth in the tourism sector, reporting consolidated net income growth of 93 percent to P1.8 billion, SMIC said.

SM Retail sustained a six percent increase in net income to P5.2 billion.

As of the end of June, SM Retail had a total of 2,357 stores, comprising  58 The SM Stores, 1,709 specialty stores, 50 SM Supermarkets, 44 SM Hypermarkets, 170 Savemore stores, 41 WalterMart stores and 285 Alfamart stores.

For property, SM Prime Holdings reported a P14.4 billion in net income, up 14 percent.

SM Prime opened SM CDO Downtown Premier in Cagayan de Oro, S Maison at Conrad Manila in Pasay City and SM Cherry in Antipolo, Rizal, bringing total Philippine operating malls to 63 with a GFA of almost 7.8 million sqm. Including the seven malls in China, SM Prime has a total GFA of 9.1 million sqm.

The banking business, through BDO Unibank Inc. reported first half earnings of  P13.3 billion, driven by the growth in loan portfolio, low-cost deposits and higher recurring fee-based service income.

Excluding one-time gains from the consolidation of BDO Life in 2016 recurring income in 2017 rose 16 percent.

China Banking Corp. saw its net income rise 10 percent to P3.6 billion, driven  by strong growth in its lending business and core recurring income.