SM Investments net profit up 27%


SM Investments Corp. announced on Wednesday that its consolidated net profit rose 27% to 12 billion pesos in the first quarter, indicating the continued recovery and consumer confidence.

“Our financial performance in the first quarter showed continued recovery momentum with accelerating revenue and net profit growth. As a group, we are delivering pre-pandemic performance, with a strong recovery continuing across our businesses. hardest hit by the pandemic. While there are still headwinds from geopolitical risks, we continue to see consumer confidence gain ground,” said SM Investments President and CEO Frederic C. DyBuncio, in a statement.

Meanwhile, consolidated revenue rose 16% to 112.1 billion pesos from 96.9 billion pesos in the same period last year.

Among its businesses, its banking sector accounted for 49% of total consolidated net income, followed by real estate at 29%, retail at 16% and portfolio investment at 6%.

In banking, BDO Unibank, Inc. posted a 13% increase in net profit to 11.7 billion pesos in the first quarter, driven by its core businesses.

BDO’s loan portfolio grew by 7% to reach 2.4 trillion pesos thanks to strong corporate demand, the recovery of the middle market and the resilience of the consumer segment.

Deposits also increased to P2.8 trillion, driven by an 11% increase in current/savings accounts (CASA) deposits, which account for 86% of total deposits. This translated into net interest income of 33.9 billion pesos, 6% more than the same period last year.

“Asset quality continued to improve with the NPL (non-performing loans) ratio down to 2.72% from 2.81% last year. BDO maintained its prudent credit and provisioning policy with provisions at 3.7 billion pesos in the first quarter of 2022, compared to 2.9 billion pesos in the same period last year, resulting in higher NPL coverage at 120.8%,” said SM Investments.

Meanwhile, the net profit of China Banking Corp. climbed 37% to reach 4.9 billion pesos. Net interest income increased 15% to 10.8 billion pesos thanks to higher earning assets and lower interest expense.

“Provisions for credit losses have been reduced by 65% ​​to P780 million, reflecting an improved macroeconomic outlook. The resulting non-performing loan coverage was higher at 119%,” he added.

SM Investment’s real estate segment, led by SM Prime Holdings, Inc., posted consolidated net profit of 7.4 billion pesos, up 15% from 6.5 billion pesos in the same period last year. last year.

The company said the growth was driven by a 15% increase in consolidated revenue to 23.9 billion pesos from 20.8 billion pesos.

The shopping mall business in the Philippines recorded revenue of P8.2 billion in the first three months, up 40% from the previous year.

“The easing of community quarantine levels allowed more stores to operate, increasing rental income by 34% to 7.6 billion pesos,” he said.

SM Prime’s residential business, led by SM Development Corp., posted revenue of 12 billion pesos in the first quarter. Its sales reached 31.1 billion pesos, largely thanks to vertical residential developments in Mandaluyong, Parañaque and Makati.

On the retail side, SM Retail reported that its net profit rose 61% to 2.6 billion pesos while its revenue rose 6% to 74.5 billion pesos.

“Notably, overall retail revenue is 94% of pre-pandemic revenue, indicating pent-up demand, particularly for non-food items since the fourth quarter of last year as levels eased. alert. Specialty stores in particular performed well with revenue up 11% and net profit up 52%,” the holding company said.

Portfolio investments, led by Atlas Consolidated Mining and Development Corp., saw a 191% increase in net profit to 1.22 billion pesos, boosted by higher production and higher metal prices.

“Our portfolio investments provide us with good growth opportunities as we continue to seek new investments in high growth areas in the Philippines,” Mr. DyBuncio added.

Recently, SM Investments shareholders approved the acquisition of Philippine Geothermal Production Co. (PGPC).

“This is in line with SM’s strong commitment to sustainability and promoting renewable energy in the country,” the company said.

On the stock market, shares of SM Investments were down 2.37% or P20 to close at P825 on Wednesday. — Luisa Maria Jacinta C. Jocson


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