“As the matriarch of the family conglomerate, Tessie has maneuvered to keep SMIC and its businesses buoyant, nimble, dynamic”
Teresita Sy Coson is one of the most powerful women in business. Nobody comes close.
The Henry Sy Sr. family’s wealth is estimated at between $14 billion and $16 billion. Tessie’s job is to grow the wealth and serve customers.
The family holding company, SM Investments Corp., has total assets of P1.399 trillion. The market values the company at P1.02 trillion. It is the Philippines’ most valuable company.
At 8, Tessie started in dad Henry Sy’s retail business, selling shoes. Tatang Henry advised her, the eldest child, as she prepared to manage the business herself: “Be the best.”
After managing the SM retail business for over 20 years, she took over as chairman in 2007 of the group financial powerhouse, BDO.
After 22 mergers and acquisitions, BDO became No. 1. It remains focused on service and reliability. “We find ways,” says the bank.
Tessie is also vice chairman of their listed family holding company, SM Investments Corp. It is the largest company in the Philippines in terms of market capitalization. She is chairman of BDO, the group’s flagship financial arm.
As the matriarch of the family conglomerate, Tessie has maneuvered to keep SMIC and its businesses buoyant, nimble, dynamic.
Revenues are rising, profits are galloping, costs are controlled and debts are conservative, even while aggressively pursuing new businesses.
SMIC has just acquired 100 percent of Philippine Geothermal Production Co. (PGPC), operator of the Tiwi and Makban steam fields with combined capacity of 300 megawatts of electricity.
It did so by paying P15.76 billion of 81 percent of Allfirst Equity Holdings, owner of PGPC. With 2021 revenues of $99.4 million and profits of $48.4 million, PGPC adds 1.2 percent to SMIC revenues and 5.5 percent of net income.
It’s a strong strategic fit, says SMIC of its PGPC purchase.
SMIC’s core businesses are retail, banking, property, and investments.
SM Retail, Inc. is the largest and most diversified retail group in the Philippines, with its food (SM Markets, WalterMart, Alfamart), non-food (THE SM STORE) and specialty retail stores which are leading players that provide consumers with an aspirational lifestyle, reliable service, quality products and consistent convenience.
SM Prime Holdings is one of the largest integrated property developers in Southeast Asia with interests in malls, residences, office buildings, resorts, hotels and convention centers and tourism-related property developments.
SM Prime is the Philippines’ largest mall developer, both in terms of gross floor area (GFA) and geographical reach.
In China, the company’s malls are in second-and third-tier cities, a strategy that the company will maintain as it grows further in numbers.
A trailblazer in the Philippine residential business, SM Prime has offerings mainly in key cities in Metro Manila and the provinces.
SMIC has BDO Unibank, Inc. and China Banking Corporation.
In over six decades, SMIC has become one of the largest market capitalized companies listed on the Philippine Stock Exchange.
SMIC’s three largest companies – SMIC, SM Prime Holdings and BDO Unibank – comprise over 30 percent of the value of the Philippine Index.
This is a testament to SMIC’s ability to deliver steady high earnings and asset growth, sound financial management, long-term sustainability and a comprehensive development program for our host communities that creates value for all our stakeholders.
China Bank is the sixth largest bank in terms of assets, loans and deposits and is uniquely positioned to service the needs of emerging companies and small-and medium-scale enterprises building on its long-term relationships that date back to the post-war era.
Its acquisitions in recent years signal China Bank’s desire to grow further in scale, market reach and product base.
BDO President Nestor Tan has won awards as the best bank CEO, here and abroad. He is president and CEO of BDO.
BDO unrivaled No. 1 in the Philippines: In resources (P3.611 trillion, 18 percent market share); loans (P2.4 trillion, 23 percent market share); deposits (P2.819 trillion, 18 percent market share); Assets Under Management (P1.769 trillion, 39 percent market share); and capital (P430 billion, P128 billion higher than the No. 2).
In branches (1,573) and ATMs (4,511), BDO is also unmatched. The capital adequacy ratio is 14.64 percent; the minimum required is only 10 percent.
BDO is also the market leader in most key business segments such as investment banking, asset management, wealth management, remittances, credit cards, insurance and leasing.
In 2019, Tan won the coveted Management Man of the Year plum, a feat scored earlier by BDO’s owner, the late Henry Sy Sr. (1999), and Nestor’s boss, BDO Chair Teresita Sy Coson (2016).
Under Tessie and Nestor, BDO scaled remarkable heights, from just being a small nondescript savings bank, Acme, servicing SM, the retail giant. When Tan joined BDO in 1997, its rank was No. 20.
In seeking to be No. 1, Tan says: “Our mission then reflected – and still reflects – our current thinking to be the preferred bank in every market we serve. We do not intend to be all things to all people. But where we are competing, we strive to excel.
“Even now that we are a full-service bank, we try to remain focused, and strive to be good at what we do, and not simply bank on the strength of our size and scale.”
In the first half of 2022, SMIC profits grew 27 percent to P25.5 billion (the conglomerate creates profits at the rate of P4.25 billion a month) on the bank of a 23 percent surge in revenues to P238.5 billion.
Key takeaways, says SMIC:
SM H1 performance a bright spot in the Philippines and region
Strong momentum in consumer spending – Filipino shoppers are back
Retail benefited from strong consumer sentiment across all categories and formats, especially in fashion-related items and in department stores
Banks delivered strong core business growth, NPL coverage and balance sheets
Property growth driven by increased foot traffic and discretionary spending in Malls
PGPC transaction approved and is sizeable, accretive and a strong strategic fit
Conservative gearing and strong balance sheet maintained
Optimistic about consumer outlook, despite global headwinds
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