SY-LED conglomerate SM Investments Corp. (SMIC) anticipates better financial performance as easing inflation could boost consumer spending, its president said.
“With inflation easing, we remain positive. An improving macroeconomic environment should help both our businesses and consumers moving forward,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a statement to the stock exchange on Wednesday.
The country’s inflation rate rose to 2.3% in October from 1.9% in September but was lower than 4.9% a year ago.
Mr. DyBuncio said this as SMIC recorded a 9% increase in its nine-month consolidated net income to P60.9 billion from P55.9 billion last year.
The banking segment had the largest net income share at 50%, followed by property at 27%, retail at 15%, and portfolio investments at 8%.
January-to-September revenue rose by 5% to P462.5 billion from P440.4 billion a year ago.
“We continued to see good growth across our businesses in the third quarter, particularly in banking,” Mr. DyBuncio said.
For the banking business, BDO Unibank, Inc. grew its net profit by 12% to P60.6 billion on the sustained contribution of its core intermediation and fee-based service businesses. Gross customer loans surged by 13% while total deposits expanded by 10%.
China Banking Corp. recorded a 13% increase in consolidated net income to P18.4 billion, led by sustained strong growth from core businesses.
Its loan portfolio surged by 14% to P871.6 billion, driven by both business and consumer lending segments. Total deposits increased by 13% to P1.3 trillion.
The property business led by SM Prime Holdings, Inc. saw a 12% increase in net income to P33.9 billion as consolidated revenue surged by 8% to P99.8 billion.
The mall business, which accounts for 57% of consolidated revenues, reported an 8% growth to P56.5 billion. Mall rental income rose by 8% to P48.5 billion, while cinemas, event ticket sales, and other revenues rose by 4% to P8 billion.
The primary residential business saw a 9% growth in revenue to P31.2 billion, with reservation sales at P47 billion. Its other businesses, including offices, hotels, and convention centers, recorded an 11% revenue growth to P11 billion.
For the retail segment, SM Retail reported a 6.6% decline in net income to P12.8 billion, while revenue surged by 4% to P301.8 billion.
“Department store performance saw normalization of margins, which remain higher than pre-pandemic levels. Food retail performance remained positive, with revenue growth of 7%, supported by better volumes and expansion,” SMIC said.
“Specialty store performance was strong in discretionary categories such as health and beauty and fashion,” it added.
Meanwhile, SMIC said its portfolio investments sustained their positive contribution to consolidated net income.
Revenue of 2GO Group, Inc. grew by 14% due to the increase in travel and the growing tourism industry, while Atlas Consolidated Mining and Development Corp. increased revenues by 7% due to higher copper and gold prices.
On Wednesday, SMIC shares dropped by 1.85% or P17 to P900 apiece. — Revin Mikhael D. Ochave
