Conglomerate SM Investments Corp. said Thursday consolidated net income grew 27 percent in the first quarter to P12 billion from P9.5 billion in the same period last year, on strong performance of core retail, property and banking businesses.
Consolidated revenues in the first quarter also increased by 16 percent to P112.1 billion from P96.9 billion a year ago.
“Our financial performance in the first quarter showed continued recovery momentum with accelerating revenue and net income growth. As a group, we are delivering pre-pandemic performance, with strong recovery continuing in our businesses that were hardest hit by the pandemic. While there are still headwinds from geopolitical risks, we continue to see consumer confidence gaining momentum,” SM Investments president and chief executive Frederic DyBuncio said.
Banks accounted for 49 percent of the group’s consolidated net income, followed by property at 29 percent and retail at 16 percent.
Portfolio investments, which include logistics, gaming and leisure, food manufacturing, natural resources, dormitories and office development, contributed 6 percent to total profit.
“Our portfolio investments provide us good growth opportunities as we continue to look for further investments in high growth areas in the Philippines,” DyBuncio said.
The shareholders of SM Investments approved the acquisition of Philippine Geothermal Production Company in line with the group’s strong commitment to sustainability and in promoting renewable energy in the country.
Retail business booked a 61-percent increase in first-quarter net income to P2.6 billion from P1.6 billion the previous year. Revenues rose 6 percent to P74.5 billion, representing 94 percent of pre-pandemic revenues, indicating strong demand especially for non-food items. Jenniffer B. Austria
Property unit SM Prime Holdings Inc. reported consolidated net income of P7.4 billion in the first quarter, up 15 percent year-on year on strong rebound from its mall business.
BDO Unibank Inc. also posted a 13-percent increase in net income to P11.7 billion in the first quarter, driven by the bank’s core businesses.
Loan portfolio rose 7 percent to P2.4 trillion on strong demand from corporate borrowers, while deposits went up to P2.8 trillion, driven by an 11-percent increase in current account/savings account deposits.