MANILA, Philippines — Improved consumption has lifted the first-quarter net income of SM Investments Corporation (SMIC) by 9 percent to ₱20.1 billion, as the conglomerate capitalizes on rising consumer confidence amid global uncertainties. In a regulatory filing released on Wednesday, the Sy family-led company reported that its revenues during this period climbed by 6 percent to ₱152 billion.
SMIC President and CEO Frederic DyBuncio expressed optimism about the current economic climate, stating, "Consumer confidence remains good and our businesses are well-positioned to serve in all categories." He highlighted that the slowing inflation, which was recorded at 1.4 percent in April, has contributed positively to consumer sentiment.
DyBuncio emphasized the importance of monitoring the global macroeconomic environment while maintaining a positive outlook for the Philippines. "We continue to monitor uncertainties in the global macroeconomic environment, but remain positive about the Philippines. SM remains focused on serving and enabling our local customers and stakeholders," he noted.
Breaking down the earnings, banking accounted for a substantial 51 percent of SMIC's total earnings, followed by property at 29 percent, retail at 14 percent, and portfolio investments at 6 percent. The banking sector showed robust performance, with BDO Unibank Inc., the largest lender in the country, reporting a net income increase of 7 percent to ₱19.7 billion, driven by growth in lending. Similarly, China Banking Corporation recorded a 10-percent jump in earnings to ₱6.5 billion, fueled by higher loan demand.
In the retail sector, SM Retail's net income expanded by 18 percent to ₱3.6 billion, reflecting strong consumer spending across all categories. Food retail revenues rose by 8 percent to ₱61.5 billion, while the non-food business contributed ₱23.5 billion, up by 6 percent. Specialty retail also saw growth, with revenues increasing by 7 percent to ₱21.8 billion, particularly in health and beauty and fashion categories.
Meanwhile, SM Prime Holdings Inc., a key player in the real estate sector, reported a net income of ₱11.7 billion, an 11 percent increase from ₱10.5 billion in the same period last year. This growth was attributed to higher gains from its malls, which accounted for 69 percent of total earnings. SM Prime's revenues reached ₱32.8 billion, representing a 7-percent uptick.
Looking ahead, SM Prime plans to invest ₱100 billion in 2025 to expand its portfolio of malls, residences, and offices. The developer is also open to partnership opportunities that could enhance the growth of its premium primary residential segment, with units starting at ₱15 million. The company aims to reinforce its leadership in the Philippine real estate market through a strategy focused on scale, innovation, and geographic reach.
Jeffrey C. Lim, President of SM Prime, stated, "Our approach is deliberate and forward-looking. Every project is meant to improve how Filipinos live, work, and connect." The company plans to add over 316,000 square meters of new gross floor area across its mall portfolio, alongside the redevelopment of more than 309,000 square meters of existing mall space.
New malls in Laoag, La Union, and Zamboanga are scheduled to open by 2025, expanding SM Prime’s reach into underserved markets and contributing to regional economic development. Lim further noted that the company is diversifying into high-value segments, with integrated property developments and premium residential projects expected to drive growth over the next five years.
As SM Prime strengthens its entry into the premium primary residential segment, it remains committed to delivering projects independently or through partnerships when necessary. Jose Juan Z. Jugo, Executive Vice President for the premium residential segment, explained, "For certain developments that we have already planned and have strong confidence in, we will pursue them on our own. However, if the project requires additional expertise or broader organizational support, we are more than willing to bring in partners."
Metro Manila will be the launch market for the yet-to-be-named premium brand, with expansion to other areas contingent on demand. Prices for these premium units will start at ₱15 million, while upper ranges will be determined by market conditions.
The overall positive performance of SMIC and its subsidiaries reflects a resilient consumer market in the Philippines, buoyed by improving economic indicators and strategic business decisions aimed at fostering growth.