SM Investments Corporation is off to a strong start in 2025, reporting a robust 9% jump in net income to P20.1 billion for the first quarter, up from P18.4 billion in the same period last year.
Revenues for the January to March period rose 6% to P152.0 billion, driven by solid performances across banking, retail, and property segments. The company credited resilient consumer confidence and a favorable economic climate, including falling inflation at 1.4% in April, for the upbeat results.
“We are encouraged by this positive start to 2025,” said Frederic C. DyBuncio, president and CEO of SM Investments. “With inflation easing and consumer confidence holding up, our businesses are well-positioned to meet demand across all segments. While we remain cautious of global uncertainties, we are optimistic about the Philippines and committed to serving our customers and stakeholders.”
Earnings breakdown
- Banking: 51%
- Property: 29%
- Retail: 14%
- Portfolio Investments: 6%
Retail on the rise
SM Retail delivered a strong performance, with net income up 18% to P3.6 billion. Total revenues rose 7% to P100.3 billion, thanks to steady growth across food and non-food categories.
- Food Retail: Revenues climbed 8% to PHP61.5 billion, driven by improved margins at SM Markets.
- Department Stores: Revenue rose 6% to PHP23.5 billion.
- Specialty Retail: Saw a 7% boost to PHP21.8 billion, with strong consumer spending on health & beauty and fashion.
Banking powers ahead
BDO Unibank continued to lead with net income of P19.7 billion, supported by strong loan growth and fee income.
China Banking Corporation also posted impressive gains, with PHP6.5 billion in net income, up 10% year-over-year.
- Net interest income grew 14% to P17.1 billion.
- Gross loans surged 19% to P954 billion.
- Deposits climbed 8% to P1.3 trillion, driven by growth in checking, savings, and time deposits.
Property segment delivers solid growth
SM Prime Holdings recorded an 11% increase in net income to P11.7 billion, fueled by revenue growth, improved margins, and cost control. Total revenues rose 7% to P32.8 billion.
- Malls: Contributed 69% of earnings, with P8.1 billion in income, up 13%. Increased foot traffic and rising interest in experiential retail were key drivers.
- Residential: Accounted for 18% of earnings, rising 4% to P2.1 billion.
- Offices & Warehouses: Posted a 15% income growth to P1.2 billion.
- Hotels & Convention Centers: Grew 17% to P362 million on strong room bookings and a busy MICE calendar.
Portfolio investments make quiet but steady contributions
- NEO led portfolio income with a 38% share.
- Philippine Geothermal Production Company followed with 36%.
- Belle Corporation added 11%.
Financial position remains strong
SM Investments ended the quarter with total assets of PHP1.7 trillion and a healthy balance sheet, maintaining a conservative gearing ratio of 31% net debt to 69% equity.
With momentum building and the macroeconomic backdrop showing signs of stability, SM Investments is positioning itself to stay ahead of the curve in 2025.