From April to Sept. 2005, SMIC reported a net profit of P2.7 billion or an increase of 24.4 percent from the P2.2 billion earnings posted the previous period.
"We can sustain that growth as our mall operations continue to do well.
Our banking unit has also been a major contributor to our bottomline," a company official said.
The same official said SM Prime Holdings Inc., the SM Group’s shopping mall concern, remains SMIC’s major income contributor.
SM Prime’s net profit is expected to rise by as much as 12 percent in 2005 boosted by increased consumer spending during the Christmas holidays as a result of increased inflow of overseas Filipino workers’ remittances.
Banking unit Banco de Oro, in which SMIC holds a 46.6-percent stake, is seen to sustain a 30-percent gain in its net profit.
In the nine months ending September last year, BDO posted a P1.17-billion net profit or an improvement of 41 percent. China Bank, in which SMIC owns 21 percent, reported a 19-percent growth in its income to P1.61 billion.
In the nine months ending Sept. 2005, SMIC registered consolidated revenues of P25.2 billion, up 10.6 percent with retail sales continuing to be the main driver of growth.
Accounting for 72 percent of SMIC’s total revenues, retail sales rose 7.9 percent in the period April to September last year to P18.2 billion, mostly due to the contribution of new SM Department stores in Batangas and Dasmarinas and the reopening of the SM Department store in Delgado, Iloilo.
The company’s retail business now operates a total of 24 department stores nationwide, including SM San Lazaro, which opened last July.
Rental revenues from the SM malls increased 12.9 percent to P4.23 billion, accounting for 17 percent of total revenues.
Aside from SM San Lazaro, other malls opened last year include the SM Supercenter Valenzuela in October. Another mall – SM Supercenter Molino, opened last Nov. 18 along with SM Sucat Annex, which will house an SM Department store.