SMIC bullish on further growth this year

SM Investments Corp. (SMIC) is expecting income and revenue growth to continue this year on the back of an anticipated improvement in the country’s economy and minimal impact from US President Donald Trump’s policies.

“I think the upward trajectory will continue … as many sectors predict, there’s likely going to be an acceleration in GDP (gross domestic product) growth, and businesses will grow along with that,” SMIC chair Amando Tetangco Jr. told reporters last week.

SMIC, the country’s largest company in terms of market capitalization, holds the record for the highest full-year net income in Philippine corporate history at P77 billion in 2023.

Its businesses include banking under BDO Unibank Inc., which is likewise a contender in terms of income size at P73.4 billion, also in 2023. Both companies moved closer to these figures in the first nine months of 2024.

With interest rates expected to stay within the government’s 2- to 4-percent target range this year, Tetangco noted that this could help boost the group’s growth.

“When inflation is lower, then nonessential [businesses] would go up as well together with the essentials. That would be good for business,” the chair said.

At the same time, Tetangco said that Trump’s policies, such as tariff increases, would have little direct impact on the SM Group.

SMIC’s real estate business under SM Prime Holdings Inc. is also particularly bullish on growth prospects this year, with a total of P110 billion in capital outlays earmarked, mostly for a massive expansion pipeline in the residential segment.

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SM Prime’s mall, hotel and office businesses will get P33 billion, with the bulk of the total set aside for widening the company’s mall gross floor area by 205,400 square meters.

SM Prime opened two malls last year, bringing its network to 87 malls in the country.

Earlier, SMIC president and CEO Frederic DyBuncio said the country’s consumption-driven economy would help the group capture demand.

“Our strong ecosystem — spanning retail, banking and property — enables us to navigate challenges while delivering long-term value,” DyBuncio said in a separate statement.