SMIC expects rosy second half after record-setting H1
SM Investments Corp. (SMIC) is optimistic that the country’s recovering macroeconomic environment would spill over to its earnings for the rest of the year after posting record-breaking first-semester profits.
The country’s largest conglomerate on Wednesday said its net income in the January to June period climbed by 6 percent to P42.6 billion, thanks to gains across all its core businesses.
SMIC president and CEO Frederic DyBuncio credited this to favorable macroeconomic conditions in the country.
“We still seem to be very optimistic about the second half,” DyBuncio said in a press briefing. He cited easing inflation and favorable macroeconomic conditions in the Philippines.
The CEO likewise attributed the optimism to anticipated interest rate cuts, as this is expected to benefit all SMIC’s businesses.
The Sy family-led conglomerate’s revenues in the first semester grew by 6 percent to P319.2 billion.
Banking under BDO Unibank Inc. and China Banking Corp. (Chinabank) accounted for 50 percent of the total earnings, followed by property at 28 percent, retail at 15 percent and portfolio investments at 7 percent.
SM Retail’s bottom line grew 10 percent to P8.4 billion on higher gains from its food, specialty and nonfood units.
BDO’s net income inched up 3 percent to P40.6 billion, a historic high as it benefited from its expanding loan book.
Net interest income logged a 7-percent increase thanks to a 14-percent climb in gross customer loans to P3.4 trillion.
Chinabank, on the other hand, logged a 14-percent increase to P13 billion due to strong core business growth and higher asset yields.
Gross loans stood at P964.7 billion, while deposits rose to P1.3 trillion, up by 5 percent.
Property under SM Prime Holdings Inc. netted P24.5 billion. This represented an 11-percent growth on the back of higher rental income, real estate sales and ancillary revenues.
Consolidated revenue grew 5 percent to P68 billion. Rental income from malls, offices, hospitality and convention centers make up 60 percent of the total.
As for its portfolio investments, Philippine Geothermal Production Co. contributed 35 percent to the segment’s total profit, followed by NEO with 30 percent and 2GO with 16 percent.
