SM Investments H1 profits up 6% to P42.6B

MANILA, Philippines — SM Investments Corp. (SM Investments) reported a consolidated net income of P42.6 billion for the first half of 2025, the company said on Wednesday.

In a disclosure dated August 6, SM Investments said its net income rose by 6% from P40.2 billion in the same period last year.

The company’s consolidated revenues for the first six months of the year also increased by 6% to P319.2 billion.

"We continue to see steady growth across our core businesses, supported by favorable macroeconomic conditions in the Philippines," Frederic DyBuncio, president and CEO of SM Investments, said in a statement. 

He also noted that strong bank lending and increased consumer spending in the company's malls and retail stores contributed to the growth.

According to the firm, banking was the largest contributor to SM Investments' net earnings, making up 50% of the total. 

The property sector followed at 28%, with retail accounting for 15% and portfolio investments for 7%.

Retail. SM Retail's net income rose by 10% to P8.4 billion, while revenues grew by 8% to P211.8 billion.

According to SM Investments, non-food retail, particularly department store revenues, increased by 11%. Specialty retail revenues were up 5%, while food retail revenues climbed 8% to P127.1 billion, driven by store expansion and volume growth.

Banking. One of SM Investments’ banks, BDO Unibank Inc., reported a 3% increase in net income to P40.6 billion, driven by a 7% rise in net interest income.

According to SM Investments, gross customer loans grew 14% to P3.4 trillion, while deposits rose 8% to over P4.0 trillion.

China Banking Corp. also posted a 14% increase in net income to P13.0 billion, supported by a 15% rise in net interest income. Gross loans reached P964.7 billion, while deposits grew 5% to P1.3 trillion.

Property. SM Prime Holdings Inc. (SM Prime) achieved an all-time high first-half net income of P24.5 billion, an 11% increase, driven by higher rental income and real estate sales.

Consolidated revenues for the property arm grew 5% to P68 billion. Malls were the largest contributor to earnings, with their income rising 14% to P17 billion, while residential project income grew 2% to P5.1 billion.

Portfolio and financials. Portfolio investments were primarily driven by the Philippine Geothermal Production Company, which accounted for 35% of total portfolio income.

SM Investments’ total assets grew by 2% to P1.7 trillion, with its gearing ratio remaining conservative at 32% net debt to 68% equity.