SM Investments posts 65% growth in 2021 net income

Sy-led SM Investments Corp. (SMIC) saw a 65% increase in its bottom line for 2021, driven mainly by the contributions from its banking units during the period.

SMIC reported a net income of P38.5 billion in 2021, up from P23.4 billion the previous year. Consolidated revenues for the year climbed 9% to P428.1 billion from P394.2 billion.

The company’s banking businesses contributed 51% to its net income in 2021, with both BDO Unibank Inc. and China Banking Corp. recording double-digit growth for the year.

BDO’s net income jumped 51% to P42.8 billion, while China Bank reported a 25% increase to P15.1 billion.

Its property unit SM Prime Holdings Inc. accounted for 25%, with its net income up 21% to P21.8 billion from P18.0 billion. This was led mainly by SM Development Corp. which raised P45.9 billion in revenue.

The retail business — SM Retail Inc. — contributed 17%, with a 133% increase in net income to P9.6 billion and a 2% increase in reported revenue to P303.9 billion.

“We saw a rebound in consumer spending in the run-up to Christmas as restrictions across the country eased,” SMIC President and Chief Executive Officer Frederic DyBuncio said in an emailed statement.

“This led to improved performance in our retail and mall units as our banks continued to deliver solid results,” he added.

DyBuncio noted that the company also increased its portfolio investments, as it increased its ownership in Goldilocks Bakeshop to 74%, and in 2GO Group Inc. to 53% in 2021.

“We believe our portfolio investments have strong assets, synergies with our core businesses, and enormous long-term growth potential,” he said.

SMIC’s business portfolio includes The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., Alfamart, SM Prime Holdings, SM Development Corp., BDO Unibank, and China Bank.

Shares in the company closed Monday at P892.00 apiece, up P21.00 or 2.41% from last Friday’s finish of P871.00. — DVM, GMA News