CEBU, Philippines — SM Investments Corporation reported a 9 percent increase in consolidated net income to P20.1 billion in the first quarter of 2025, up from P18.4 billion in the same period last year, as strong consumer spending and easing inflation supported growth across its core businesses.
Total revenues rose 6 percent year-on-year to P152.0 billion, compared to PHP143.7 billion in Q1 2024. The positive performance was buoyed by a favorable macroeconomic environment, including a drop in the country’s inflation rate to 1.4 percent in April, which helped lift household consumption.
“We’re pleased with how the year has started,” said Frederic C. DyBuncio, President and Chief Executive Officer (CEO) of SM Investments.
“While we are keeping an eye on global challenges, we are confident about the growth outlook for the Philippines,” DyBuncio added.
Banking contributed the largest share of net income at 51 percent. Its property arm accounted for 29 percent, while retail delivered 14 percent, and portfolio investments comprised the remaining six percent.
Retail: Consumer Confidence Boosts Spending
SM Retail posted an 18 percent increase in net income to P3.6 billion, while revenues climbed 7 percent to P100.3 billion on the back of robust demand across both food and non-food categories.
Food retail, including supermarket operations, rose 8 percent to P61.5 billion, driven by improved margins at SM Markets.
Department store sales increased 6 percent to PHP23.5 billion. Specialty retail revenue rose 7 percent to P21.8 billion, with strong performance in the health and beauty and fashion segments
Banking: Loan and Deposit Growth Remains Strong
BDO Unibank, SM’s flagship banking unit, recorded a net income of P19.7 billion, up from P18.5 billion in the first quarter of 2024. The performance was supported by double-digit loan growth and an increase in fee-based income.
China Banking Corporation saw a 10% rise in net income to P6.5 billion, while net interest income grew 14 percent to P17.1 billion, driven by higher loan volumes and better asset yields.
Gross loans expanded 19 percent to P954 billion. Total deposits rose 8 percent to P1.3 trillion, supported by higher balances in CASA and time deposit accounts
Property: Malls, Offices, and Residential Drive Growth
SM Prime Holdings, the group’s property arm, reported a net income of P11.7 billion, up 11 percent, with total revenues rising 7 percent to P32.8 billion.
Malls remained the top earner, contributing 69 percent of property income, with profits up 13 percent to P8.1 billion, driven by increased foot traffic and high occupancy.
Residential earnings rose 4% to P2.1 billion due to revenue recognition from completed housing units.
Offices and logistics operations saw a 15 percent increase in profit to P1.2 billion.
Hotels and convention centers posted a 17 percent gain, reaching P362 million, as bookings and events rebounded.
Portfolio Investments: Focus on Renewable Energy and Premium Assets
SM’s portfolio investments delivered steady returns, led by NEO, contributing 38 percent of segment income.
Philippine Geothermal Production Company at 36 percent, and Belle Corporation at 11 percent.
The portfolio reflects SM’s strategic investments in clean energy and real estate ventures.
SM Investments closed the first quarter with total assets of P1.7 trillion. The company maintained a conservative capital structure, with a 31 percent net debt to 69 percent equity ratio, underlining its strong balance sheet and capacity for continued expansion.
SM Investments Corporation is one of the largest and most diversified conglomerates in the Philippines, with leading positions in retail, banking, and property development. The company holds key stakes in BDO Unibank, China Bank, and SM Prime Holdings, and is actively expanding into high-growth sectors such as clean energy, logistics, and technology infrastructure to capitalize on long-term opportunities in the Philippine economy.