SMIC posts P20.1-B Q1 profit; banking leads with 51% share

SY-LED conglomerate SM Investments Corp. (SMIC) reported a 9% increase in its first-quarter (Q1) consolidated net income to P20.1 billion from P18.4 billion a year ago, driven by growth across its core business segments.

January-to-March consolidated revenue rose by 6% to P152 billion from P143.7 billion in the same period last year, SMIC said in a regulatory filing on Wednesday.

The banking segment accounted for 51% of reported net earnings, followed by property at 29%, retail at 14%, and portfolio investments at 6%.

“We are encouraged by the positive start to 2025. Consumer confidence remains good and our businesses are well-positioned to serve in all categories. Positive sentiment is supported by falling inflation, which was at 1.4% in April,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

“We continue to monitor uncertainties in the global macroeconomic environment but remain positive about the Philippines. SM remains focused on serving and enabling our local customers and stakeholders,” he added.

In the retail business, SM Retail recorded an 18% increase in net income to P3.6 billion as revenue climbed by 7% to P100.3 billion.

Food retail revenue rose by 8% to P61.5 billion on improved margins, while non-food retail revenue increased by 6% to P23.5 billion, led by the health and beauty and fashion categories.

In the banking segment, BDO Unibank, Inc. grew its net income to P19.7 billion on the back of double-digit growth in loans and a solid performance in fee-based income.

China Banking Corp. posted a 10% increase in net income to P6.5 billion as net interest income rose by 14% to P17.1 billion, driven by higher asset yields and loan volume.

The property business, led by SM Prime Holdings, Inc., reported an 11% increase in net income to P11.7 billion as total revenue climbed by 7% to P32.8 billion, supported by higher rental income, revenue recognition from real estate sales, and other income sources.

SMIC said its portfolio investments were driven by office developer NEO, which contributed 38% of total portfolio income, followed by renewable energy company Philippine Geothermal Production Co. at 36%, and resort developer Belle Corp. at 11%.

In a separate statement, SM Prime outlined a three-pronged roadmap for long-term growth that focuses on organic expansion, regional development, and diversification.

SM Prime will add over 316,000 square meters of new gross floor area to its mall portfolio and redevelop more than 309,000 square meters of existing mall space in the near term.

NEW MALLSThe real estate developer will also open new malls in Laoag, La Union, and Zamboanga this year to expand its provincial footprint.

It is also pursuing diversification into high-value segments, with integrated property developments and premium residential projects expected to drive growth over the next five years.

Regarding its upcoming entry into the premium residential market, SM Prime said it is open to partnerships for future projects. The initial launch market for the new premium residential venture will be in Metro Manila.

“For certain developments that we have already planned and have strong confidence in, we will pursue them on our own. However, if the project requires additional expertise or broader organizational support, we are more than willing to bring in partners,” SM Prime Executive Vice-President for the premium residential segment Jose Juan Z. Jugo said.

Pricing for SM Prime’s premium residential segment will start at P15 million, with upper price ranges to be determined by market conditions.

SM Prime has earmarked P100 billion in capital expenditure for this year.

On Wednesday, SMIC shares fell by 0.45% or P4 to P876 per share, while SM Prime shares declined by 0.21% or five centavos to P24.15 apiece. — Revin Mikhael D. Ochave