Sy family’s conglomerate SM Investments Corp. (SMIC) saw a high double-digit decline in its earnings in 2020 amid a challenging business environment due to the COVID-19 pandemic.
In a disclosure to the Philippine Stock Exchange on Friday, SMIC said its net income last year stood at P23.4 billion, down 48% from P44.6 billion in 2019.
Consolidated revenues amounted to P394.2 billion, lower than P502.0 billion year-on-year.
SMIC’s banking and property businesses accounted for 55% and 33% of net income while retail contributed 12%.
“Our businesses continued to build momentum through the end of 2020 as they addressed the changed behaviors and needs of our customers,” SMIC president Frederic Dybuncio said.
“Our banks, food retailing, and residential property all performed well, while our malls and non-food retail operations showed steady improvements as conditions allowed. We continue to innovate and focus on safety and are cautiously optimistic about the year ahead,” Dybuncio said.
SM Retail Inc., which consists of non-food such as The SM Store, specialty stores, and food stores, reported revenues at P296.8 billion, down 19% from P366.8 billion in 2019.
SM Retail’s net income declined by 67% at P4.1 billion.
SMIC’s property arm SM Prime Holdings, meanwhile, recorded a net income of P18.0 billion, down from P38.1 billion in 2019. Revenues slipped to P81.9 billion from P118.3 year-on-year.
SM Prime’s Philippine mall business reported P23.6 billion revenues lower than the P57.8 billion posted in 2019.
SM Prime’s residential business, led by SM Development Corp., recorded a 6% revenue growth to P46.5 billion from P43.7 billion in 2019.
The commercial properties business segment reported P4.8 billion in revenues from P4.6 billion in 2019.
The hotels and convention centers business posted P1.6 billion revenues from P5.1 billion in 2019.
SMIC’s banking unit BDO Unibank, Inc. 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. reported net income of P12.1 billion, up 20% year-on-year.
SMIC also ended 2020 with total assets of P1.2 trillion, 7% higher than a year earlier.—AOL, GMA News