MANILA, Philippines - SM Investments Corp. (SMIC), the investment holding firm of tycoon Henry Sy, posted record earnings last year despite growing at a slower pace from the previous year.
SMIC reported yesterday a net income of P28.4 billion in 2014, up 3.6 percent from 2013’s P27.4 billion.
The conglomerate said its earnings growth for 2014 was mainly driven by banking unit BDO Unibank Inc. which posted a core income growth of 18 percent year-on-year.
“The record 2014 consolidated net income includes exceptional items such as trading gains from the group’s banking businesses,” SMIC said.
On a recurring basis, SMIC said its net income grew 14.4 percent year-on-year.
“The group’s strong underlying earnings growth of 14.4 percent in 2014 was the result of solid performance and ongoing expansion in all our three core businesses. During the year we raised additional capital and entered into several strong partnerships, accelerating our investments for growth and ensuring we expand in line with our continuing optimism about the economic prospects of the Philippines,” SMIC president Harley T. Sy said.
The company’s consolidated revenues also jumped nine percent to P275.7 billion in 2014 from P253.3 billion the previous year.
SMIC attributed the growth of its revenues to good retail sales environment which in turn boosted rental revenues in SM’s property business.
BDO, on its own, recorded a net income of P22.8 billion last year, slightly higher than the P22.6 billion recorded in 2013.
Together with China Banking Corp, banks accounted for the largest portion or 41 percent of SMIC’s consolidated net income last year.
SMIC said its business also drew strength from its property operations through SM Prime Holdings Inc. which registered consolidated net income of P18.4 billion and revenue of P66.2 billion.