SM consolidated net income up 10% in H1 to PHP40BN, Q2 growth at 13%

PASAY CITY, Philippines, Aug. 7, 2024 /PRNewswire/ -- SM Investments Corporation (SM Investments) reported a 10% increase in consolidated net income in the first half of 2024 to PHP40.2 billion, up from PHP36.5 billion in the same period last year. This reflected a 13% growth in net income in the second quarter, reaching PHP21.8 billion. Consolidated revenues rose by 5% in the first half to PHP 301.4 billion from PHP286.7 billion year-on-year. Second quarter revenues grew by 6% to PHP157.7 billion.

"SM's double digit growth in the first half results reflects a positive environment for our businesses. Improved discretionary spending in the second quarter lifted retail sales, while our banks, property and portfolio investments continued to deliver. We remain cautiously optimistic for the balance of the year," said SM Investments President and Chief Executive Office Frederic C. DyBuncio.

Of total net earnings, banking accounted for the largest share at 50%. Property contributed 27% while retail accounted for 14% and portfolio investments' share was at 9%.

"We were also pleased with the demand and positive feedback on our recent maiden Euro Medium-Term Notes issuance, highlighting the quality of our financials and investability of strong Filipino companies," Mr. DyBuncio added.

On July 18, SM Investments priced a USD500 million drawdown from its USD3 billion EMTN program, now listed on the Singapore Exchange Securities Trading Limited. The issuance, which was 3.2x times oversubscribed, with final demand reaching USD1.6 billion, marked SM Investments' largest offshore bond issuance since 2014.

SM Retail net income stood at PHP7.6 billion in the first half from PHP8.4 billion last year, due to a high base effect from the impact of the lifting of mobility restrictions on consumption in 2023. 

Revenues grew 4% in the first half to PHP196.9 billion from PHP188.5 billion.  The second quarter reflected higher growth by 6% in retail revenues and 2% in net income indicative of spending on discretionary items such as appliances, beauty and fashion. Specialty retail revenues increased 5%. Food retail revenues grew by 7%.  

SM Prime Holdings, Inc. reported its consolidated net income increased 13% to PHP22.1 billion in the first half from PHP19.4 billion in the same period last year. 

BDO Unibank, Inc. (BDO) posted net earnings of PHP39.4 billion in the first half, 12% higher year-on-year, on the stronger momentum from its core intermediation and fee-based service businesses. 

China Banking Corporation reported net income in the first half rose to a record PHP11.4 billion, up 6% compared to the same period last year on the back of stronger core lending and deposit-taking activities.

source: SM Investments Corporation