Henry Sy’s SM posts 14% profit rise in Jan-Sept

MANILA, Philippines (UPDATED) – SM Investments Corporation (SMIC), the holding firm of the Philippines’ richest man Henry Sy, saw its earnings grow 14% in the first 9 months of 2013, thanks to the strong performance of its banking and mall businesses.

The company said it expects the rest of the year to be robust as consumers spend more this holiday season.

SMIC’s net income in January-September reached P18.5 billion, higher than last year’s P16.2 billion.

Earnings grew as revenues jumped 15% to P183.1 billion from P158.7 in January-September 2012.

“With these 9-month results, we are on course to meeting our full-year target,” said SMIC president Harley Sy in a statement sent to the Philippine Stock Exchange on Thursday, November 7.

Of the group’s net income, banking units accounted for the largest share of 48.6%, followed by retail (18.8%), and property (32.7%).

SMIC owns the country’s largest bank, Banco de Oro; retail group, SM Retail; and mall developer and operator, SM Prime Holdings.

“We are confident of ending the year on a high note, with our retail and mall businesses benefiting from increased consumer spending during the Christmas season,” Sy said.

Merger

Sy is also confident about the company’s prospects as it pushes ahead with plans to merge its property businesses.

The group recently obtained the securities regulator’s approval to merge units SM Prime and SM Land, with the former as surviving entity.

Prior to that merger, SM Land already acquired all the shares of the other property units SM Development and Highlands Prime, both of which were delisted from the stock exchange.

The consolidation will create the country’s biggest property company and result in “significant synergies and accelerated growth in the medium term.” – Rappler.com