Conglomerate SM Investments Corp. said Wednesday net income climbed 50 percent in the first nine months to P42.9 billion from P28.6 billion in the same period last year on strong performance of core banking, real estate and retail businesses.
SMIC, the listed holding company of the Sy family, said in a disclosure to the stock exchange nine-month consolidated revenues rose 31 percent to P381.9 billion from P292.6 billion a year ago.
SMIC president and chief executive Frederic DyBuncio said increased economic activity and strong consumer sentiment supported the company’s growth this year.
The company’s recent acquisition of Philippine Geothermal Production Company Inc., which operates the Tiwi and Mak-Ban steam fields in Albay, also contributed to the strong financial results.
Banking business accounted for 45 percent of total consolidated net income, followed by property at 23 percent and retail at 19 percent. Portfolio companies accounted for the remaining 13 percent of reported net earnings.
“With encouraging results, we remain confident about sustained growth in the fourth quarter,” DyBuncio said.
SM Retail reported a 138-percent increase in nine-month income to P11.5 billion, surpassing the 2019 pre-pandemic levels.
Retail revenues rose 26 percent to P258.1 billion on increased demand for school essentials and other supplies with the resumption of face-to-face classes.
“Increasing employment and higher OFW [Overseas Filipino workers] remittances across the country helped fuel spending, and we anticipate continued momentum towards the fourth quarter with the resumption of normalized holiday activities,”DyBuncio said.
SMIC’s property development business under SM Prime Holdings Inc. reported P22 billion in consolidated net income in the first nine months, or 41 percent higher than last year’s P15.6 billion.
This was supported by the P73.7-billion in consolidated revenues, a 30 percent growth from last year’s level. Mall revenues more than doubled to P33.9 billion.
Banking arm BOO Unibank Inc. also saw its net income increase to P40 billion from P32.4 billion on solid results across core businesses.