BDO, SMIC leaders see continuing uncertainty, opportunities in 2026

BDO Unibank Inc. expects the challenging business outlook, which has caused investors to hold back on new investments due to uncertainty, will likely extend into 2026.

Leaders from both BDO and its parent company, SM Investments Corp. (SMIC), however, noted that pockets of opportunities remain, especially outside of the capital region.

BDO Unibank president and chief executive Nestor Tan described 2025 as a “rollercoaster year” and said the uncertainty is likely to continue into 2026.

“The business is uncertain,” Tan said, citing a strong start to the year that was followed by setbacks due to an uncertain “liberation,” geopolitical risks and supply chain issues.

Tan said the business community is unsure of what is likely to happen, causing them to hold back on new investments. “Not because they don’t want to invest, but they will hold back a little,” he said.

Despite the headwinds, Tan sees positive signs in the provinces. “Outside of the environment that we see. We still see provincial expansion going on. It’s growing faster than NCR on average,” he said.

Opportunities are also present in sectors like infrastructure and energy, where “people continue to invest.”

Meanwhile, SM Investments Corp. vice chairman Teresita Sy-Coson offered a slightly more optimistic view, saying the next year “will not be so bad if we think more positively.”

She emphasized the conglomerate’s commitment to its plans regardless of external factors. “We just have to do our work in spite of all the political noises so for us we’re going to continue what we have planned and I think we will be able to achieve our targets next year,” Sy-Coson said.

SMIC reported a consolidated net income of P64.4 billion for the January to September period, marking a 6-percent increase from P60.9 billion in the same period last year.

Consolidated revenues for the conglomerate, which has interests in retail, property and banking, rose 4 percent to P482.3 billion from P462.5 billion a year ago.

Banking, primarily BDO, accounted for the largest share of SM Investments’ net income at 50 percent, followed by property at 28 percent, retail at 15 percent and portfolio investments at 7 percent.