SM Investments Corp. (SMIC) said Monday it remains confident in the long-term growth of the Philippines economy amid the improving macroeconomic conditions.
SMIC executive vice president for treasury, finance and planning Erwin Pato, in interviews with CNBC and Bloomberg, expressed the conglomerate’s strong belief in the Philippines’ growth momentum. He said the group’s investments in retail, property and financial services would continue to support the country’s consumption-driven growth.
“We’re a proxy of the Philippine economy because of our scale and the communities we serve,” said Pato.
“With lowering interest rates, we believe this will help our macroeconomics and could lead our economic managers to achieve our inflation rate within the 2 percent to 4 percent range. If that happens, it suggests a strong tailwind for the consumer story,” Pato said.
Given its positive outlook on the domestic economy, SMIC announced a P60-billion share buyback program, the largest of its kind in Philippine corporate history.
“We’re having this buyback because we believe in our company and its growth potential. We believe that growth in the Philippines will continue to be consumption-driven. Seventy percent of our GDP is consumption-driven, and our business is right within that footprint. Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth,” he said.
SMIC saw its net income increase 7 percent in 2024 to P82.6 billion from P77 billion in 2023, while SM Retail Inc. posted a net income of P20.9 billion, up from P19.9 billion in the previous year.
The conglomerate’s property arm SM Prime Holdings, Inc. also earmarked P100 billion this year in the development of malls, residences, offices, hotels and convention centers. The investment is based on the expectation of continued growth in consumer demand and corporate activity.