SM Investments Corp. net income plunges 69% in H1 due to COVID-19

Sy family-led conglomerate SM Investments Corporation (SMIC) reported a consolidated net income of P7.1 billion in the first half of 2020, down 69% from P23.0 billion in the same period last year.

Consolidated revenues decreased by 21% to P185.5 billion from P233.7 billion a year earlier.

“Our half-year financial results are within our overall expectations, given the context of the lockdown due to the COVID-19 outbreak which had a greater impact in the second quarter. The results also reflect the group’s continued financial prudence and conservative balance sheet after our banks made substantial provisions for potential customer delinquencies,” SMIC president and CEO Frederic DyBuncio said.

“Our food retail and residential property businesses have continued to perform well despite the pandemic as have the core businesses of our banks. The current environment has been most challenging for our non-food retail and mall operations which have adapted quickly to new customer needs and critical safety considerations," he added.

"All our businesses will continue to prioritize health and safety as well as convenience for our customers and stakeholders."

SMIC’s property and banking businesses accounted for 61% and 34% of net income while retail contributed 5%.

SM Retail reported revenues of P139.2 billion, lower by 18%. Retail net income was at P522 million from P5.7 billion the previous period.

In the first half, food retail revenues grew 15% with Alfamart posting an increase of 32% in revenues in the same period.

SM Prime Holdings Inc. posted a consolidated net income of P10.4 billion, down 46% from P19.3 billion year-on-year.

BDO Unibank Inc. (BDO) recorded P4.3 billion in profits in the first half versus P20.1 billion in the comparable period last year as the bank booked total provisions of P22.4 billion in anticipation of potential delinquencies due to the COVID-19 pandemic.

China Banking Corporation posted P5.2 billion in net income in the first half of 2020, up 24% year-on-year.

The growth was achieved even as the bank ramped up provisions more than fourteen times to P4.8 billion in anticipation of the impact of COVID-19 and ongoing quarantine measures on asset quality, according to SMIC.

As of end-June, total assets of SMIC grew to P1.2 trillion. — BM, GMA News