SM Investments net income in Jan-Sept jumps 79% to P27.2B

Sy-led conglomerate SM Investments Corp. (SMIC) saw a huge increase in its earnings in the first nine months of 2021 on the back of the reopening of the economy amid the pandemic.

In a disclosure to the Philippine Stock Exchange on Wednesday, SMIC reported a net income of P27.2 billion in the January to September period, up 79% from P15.2 billion in the same period last year.

The company’s consolidated revenues, meanwhile, grew 5% year-on-year to P289.4 billion from P276.4 billion.

SMIC’s banking unit accounted for the lion’s share (60%) of the earnings, followed by property at 27% and retail at 13%. 

“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,” said SMIC president and CEO Frederic DyBuncio.

SM Retail reported a retail net income of P4.8 billion, up from P2.2 billion for the comparative period, benefiting from sustained growth in sales of the SM STORE and Specialty Stores as well as cost management.

Its property arm, SM Prime Holdings Inc., saw a 9% increase in consolidated net income to P15.6 billion in the first nine months of 2021 from P14.4 billion in the same period last year on the back of its unit SM Development Corp.’s reservation sales reaching P76.3 billion, up 14% year-on-year.

SM Prime’s Philippine mall business, which accounts for 28% of consolidated revenues, recorded P15.8 billion in revenues, 14% lower from last year’s P18.3 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 or the Inter-Agency Task Force for the Management of Emerging Infectious Diseases, SMIC said.

Meanwhile, SM Prime’s China mall business has reported a 28% increase in revenues during the period.

BDO Unibank Inc. posted a net income of P32.4 billion from P16.6 billion a year ago due to resilient business franchise and normalized provisions.

China Banking Corp., likewise, posted a consolidated net income of P11.2 billion for the January to September period, up 35% year-on-year on the back of sustained core business growth and effective cost management. — VBL, GMA News