SM Investments Corp. (SMIC), the holding firm of the businesses of the Sy family, said its income grew 9 percent to P16.6 billion, from last year’s about P15 billion in profits.
The property business contributed the most to SMIC’s consolidated net income at 42 percent, followed by banks with 36 percent and retail with 22 percent.
Excluding one-time items in 2016, recurring income increased 16 percent in the first six months, the company said in a statement.
Consolidated revenues rose 7 percent to P181.6 billion in the first half, from P169.7 billion last year.
“Even without the benefits of an election year, we saw sustained growth across all our core businesses, driven by the strong economy and resilient consumer sentiment,” SMIC President Frederic DyBuncio said in a statement. “SM will continue to capture this momentum through nationwide expansion and by investing in high growth opportunities.”
“Outside of the core businesses, SMIC continues to build its portfolio of investments in complementary businesses that will help capture the high growth of the Philippine economy,” SMIC’s disclosure said.
Among its equity-investments portfolio, Belle Corp. benefited from increased growth in the tourism sector, reporting consolidated net income growth of almost double to P1.8 billion.
SM Retail reported sustained growth in total sales of 6 percent to P131.6 billion, while net income rose 6 percent to P5.2 billion.
SM Prime Holdings Inc., the unit that operates the shopping malls, reported consolidated net income of P14.4 billion, up 14 percent from the previous year.
BDO Unibank Inc., the country’s largest lender, reported its first half net income at P13.3 billion, or flat from the previous year despite its growth in loan portfolio, low-cost deposits and higher recurring fee-based service income.
China Banking Corp. reported net income growth of 10 percent to P3.6 billion for the first half, driven by strong growth in its lending business and core recurring income.
SM increased its investments in its subsidiaries in the first half with the P60-billion stock-rights issue of BDO in January 2017 and P15 billion for China Bank in May 2017, as well as its acquisition of stakes in logistics company 2GO Group and Philippines Urban Living Solutions, the operator of a dormitel chain under the “MyTown” brand.