SM Group profit hits P23.4 billion last year

MANILA, Philippines — SM Investments Corp. (SMIC), the investment holding company of the SM Group, reported a 48 percent drop in net income in 2020 to P23.4 billion as the negative impact of COVID-19 battered the company’s different businesses.

Consolidated revenues also slowed down to P394.2 billion from P502 billion in 2019.

Despite the lower income, SMIC president Frederic DyBuncio said business is gaining momentum.

“Our businesses continued to build momentum through the end of 2020 as they addressed the changed behaviors and needs of our customers. Our banks, food retailing and residential property all performed well, while our malls and non-food retail operations showed steady improvements as conditions allowed,” DyBuncio said.

The banking and property businesses accounted for 55 percent and 33 percent of net income while retail contributed 12 percent.

BDO Unibank Inc. (BDO) posted a net income of P28.2 billion, lower than the P44.2 billion in 2019 due mainly to pre-emptive provisions of P30.2 billion set aside against potential delinquencies from the pandemic.

On the other hand, China Banking Corp. (China Bank) reported a net income of P12.1 billion, 20 percent higher than the year ago.

SM Prime Holdings (SM Prime), the property arm, recorded a net income of P18 billion compared to P38.1 billion as revenues amounted to P81.9 billion from P118.3 billion in 2019.

SM Prime’s Philippine mall business continued to report lower revenues at P23.6 billion revenues from P57.8 billion in 2019.

The residential business, led by SM Development Corp. (SMDC), on the other hand, recorded a six percent revenue growth to P46.5 billion.

The commercial properties business segment reported P4.8 billion in revenues. Revenues from the hotels and convention centers business declined to P1.6 billion from P5.1 billion in 2019.

SM Retail Inc. which consists of non-food through The SM Store and specialty stores and food stores, reported a net income of P4.1 billion, down by 67 percent as revenues fell 19 percent to P296.8 billion.

Despite this, The SM Store opened two new stores in Butuan and Zamboanga.