SM Investments net income grows 79% to PHP27 billion in nine-month period
(10 November 2021, Pasay City, Philippines) SM Investments Corporation reported a consolidated net income of PHP27.2 billion in the January to September period, higher by 79% from PHP15.2 billion in the same period last year.
Consolidated revenues rose 5% to PHP289.4 billion in the first nine months from PHP276.4 billion in the same period last year.
Banking accounted for 60% of SM’s reported net earnings from core businesses, followed by property at 27% and retail at 13%. Total assets were at PHP1.3 trillion. Gearing ratio stood at 40% net debt to 60% equity.
“Our third quarter results reflect the resilience of all our businesses and early signs of the economy opening up. With improved vaccination rates across the country and lower COVID-19 cases, we are optimistic about conditions for the fourth quarter, but continue to be vigilant about risks,” SM Investments President and Chief Executive Officer Frederic C. DyBuncio said.
In the third quarter the SM group made significant commitments towards sustainability and climate change. SM Investments and SM Prime Holdings Inc. both formally joined as signatories in support of the Taskforce for Climate-related Financial Disclosures (TCFD), demonstrating their commitment to safeguarding against climate risk through better disclosures.
SM Prime announced that it will target for more than 50% of electricity use across its businesses to come from renewable sources by the end of 2022, a commitment in support of the Philippine national goal of 35% renewable energy supply by 2030.
As part of its sustainability advocacy, the SM group also hosted its third conference with the Global Reporting Initiative (GRI), a two-day regional event “Leaving No One Behind: Private Sector in Solidarity for Sustainable COVID-19 Recovery and Delivering the SDGs (Sustainable Development Goals)”, bringing together over 30 speakers and panelists from across Asia.
SM Retail reported retail net income was at PHP4.8 billion from PHP2.2 billion in the previous period, benefitting from sustained growth in sales of the SM STORE and Specialty Stores as well as cost management.
Retail revenues stood at PHP204.9 billion, slightly lower than PHP206.1 billion in the previous period due to a higher base in 2020 from pantry loading of grocery items.
SM Prime Holdings, Inc. reported a 9% increase in consolidated net income to PHP15.6 billion in the first nine months of 2021 from PHP14.4 billion in the same period last year. Consolidated revenues recorded PHP56.8 billion, 6% lower from PHP60.7 billion in the same period last year.
SM Prime’s residential business, led by SM Development Corporation and accounting for 56% of consolidated revenues, registered PHP32.1 billion in revenues, 6% lower from last year’s PHP34.2 billion. SMDC’s reservation sales reached PHP76.3 billion in the first three quarters of 2021, 14% higher from PHP66.7 billion in the same period last year.
SM Prime’s Philippine mall business, which accounts for 28% of consolidated revenues, recorded PHP15.8 billion in revenues, 14% lower from last year’s PHP18.3 billion.
The reimplementation of stricter community quarantine in August 2021 has affected the operation of the local mall business, limiting the operation of non-essential shops in accordance with guidelines of the IATF (The Inter-Agency Task Force for the Management of Emerging Infectious Diseases).
Meanwhile, SM Prime’s China mall business has reported a 28% increase in revenues to RMB0.59 billion in the nine-month period from RMB0.46 in the same period last year.
SM Prime’s commercial properties business reported PHP3.8 billion in revenues, slightly higher from the same period last year. The hotels and convention centers registered PHP0.9 billion in revenues for the first nine months of 2021.
BDO Unibank, Inc. (BDO) delivered a net income of PHP32.4 billion compared to PHP16.6 billion a year ago, on the bank’s resilient business franchise and normalized provisions.
Gross customer loans outpaced the industry with a 5% year-on-year (YoY) increase while total deposits went up by 6% YoY, driven by the 14% YoY expansion in Current Account/Savings Account (CASA) deposits that now comprise 85% of total deposits.
China Banking Corporation posted a consolidated net income of PHP11.2 billion for the January to September period, 35% higher compared to the same period last year on the back of sustained core business growth and effective cost management.
Net interest income rose 13% to PHP28.2 billion as interest expense dropped by 48% with the growing share of CASA.
About SM Investments Corporation
SM Investments Corporation is a leading Philippine company that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.
SM’s retail operations are the country’s largest and most diversified with its food, non-food, and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the 6th largest bank.
For more about SM, visit www.sminvestments.com