SM Investments Corporation (SM Investments), the powerhouse behind the SM group, is doubling down on its bullish outlook for the Philippines’ economic trajectory. With a P60-billion share buyback—the largest in the country’s corporate history—the company is signaling confidence in both its own future and the broader economy.
Speaking with CNBC and Bloomberg, Erwin G. Pato, executive vice president for Treasury, Finance, and Planning, reaffirmed SM Investments’ commitment to fueling growth through its integrated retail, property, and financial services businesses.
“We’re executing this buyback because we believe in our company’s value and long-term growth potential,” Pato stated.
The Philippines’ economy remains consumption-driven, with household spending accounting for nearly 70% of GDP—a sweet spot for SM Investments. “Our businesses align perfectly with this demand. Retail, real estate and financial services will remain key growth engines,” Pato added.
Erwin G. Pato
SM’s strong financial performance
Solid numbers back SM Investments’ confidence. The company’s consolidated net income surged 7% in 2024, reaching P82.6 billion from P77.0 billion the previous year. Meanwhile, SM Retail Inc. posted a net income of P20.9 billion, up from P19.9 billion in 2023.
With inflation easing and interest rates trending downward, Pato sees a favorable economic landscape ahead. “Lower interest rates could help our economic managers keep inflation within the 2% to 4% target, strengthening consumer momentum,” he explained.
SM Prime Holdings, Inc., the group’s property arm, is betting boldly on sustained consumer demand, earmarking P100 billion for new malls,