Leading Philippine conglomerates are entering the second half of 2025 with cautious optimism, as easing inflation and the prospect of further interest rate cuts stand to benefit their core businesses.
Economists said the cooling inflation, which fell to 0.9 percent in July, is creating room for the Bangko Sentral ng Pilipinas (BSP) to continue cutting policy rates. The benchmark rate is now at 5.25 percent, the lowest in three years. Sectors like retail and real estate are expected to benefit as lower interest rates encourage investment and domestic spending.
Sy-led SM Investments Corp. (SMIC), with businesses in retail, banking and real estate, said it continues to see steady growth supported by favorable macroeconomic conditions.
“The Philippine economy was steady at 5.4 percent growth in the first quarter, while inflation has eased to its lowest level since 2019, creating a more supportive environment for both corporates and consumers,” SMIC president and chief executive Frederic DyBuncio said in a statement.
“Despite global trade uncertainties, overall sentiment remains positive, and we share that optimism for the remainder of the year,” he said.
DyBuncio noted that bank lending remains strong, and consumer spending at malls and retail stores continues to rise.
The conglomerate posted a consolidated net income of P42.6 billion in the first half of 2025, a 6-percent increase from P40.2 billion in the same period last year. Consolidated revenues for the period rose 6 percent to P319.2 billion from P301.4 billion.
Banking accounted for 50 percent of SMIC’s net earnings, followed by property at 28 percent, retail at 15 percent, and portfolio investments at 7 percent.
Separately, Ayala Corp. said its full-year growth targets remain achievable despite its first-half core net income dipping 2 percent to P23.7 billion.
“While our telco and energy businesses have some catching up to do, our full-year targets remain achievable,” Ayala president and chief executive Cezar Consing said.
The company is also encouraged by better numbers from its portfolio businesses. ACMobility’s net income jumped to P122 million from P24 million, while Integrated Micro-electronics Inc. posted a net income of $7.6 million, a turnaround from an $8.8-million net loss in the same period last year.
AC Health and AC Logistics also narrowed their core net losses.
Gokongwei-owned JG Summit Holdings also expects sustained topline performance driven by improving consumer sentiment.
“Overall, we are optimistic on the future prospect of the business and will continue to look for opportunities to scale up into adjacencies in airport infrastructure, supply chain/logistics, and digital finance,” JG Summit president and chief executive Lance Gokongwei said.
