MANILA, Philippines – SM Investments Corp. reported a 15% growth in net income to P21.2 billion in 2011 driven by the strong growth of its banking, mall and real property businesses.
In its yearend 2011 report to the stock exchange on Wednesday, March 7, SM President Mr. Harley T. Sy said, “2011 proved to be a favorable year for SM, as it was able to continue delivering positive results and increased challenges in the external environment.”
The Sy-led holdings firm provided the breakdown of its main profit contributors. See pie chart below.
P10.5 billion from Banco de Oro Unibank, Inc.
- Net income up 19% year on year
- Loan portfolio grew 24% to P670.1 billion
- Total deposits increased 10% to P858.6 billion
- Recurring fee-based income rose 18% to Php12.3 billion
- Operating expenses grew moderately at 4% to Php36.3 billion
- Non-performing loan (NPL) ratio further declined to 3.4% from 4.7% in 2010
- Capital adequacy ratio (CAR) improved from 13.8% in 2010 to 15.8%.
- Return on equity at 11.7%
P5 billion from China Banking Corporation
- Return on equity of 13.7%
- Return on assets of 2.0%
- Gross loan portfolio grew by 32% to Php150.0 billion
- NPL ratio improved to 2.9% in 2011 from 3.9% in 2010
- Total resources amounted to P262.2 billion
- Total deposits reached P216.1 billion
- Total capital funds reached Php39.3 billion in 2011, 10.8% more than in 2010
- CAR at 17.8%
P5.8 billion from SM Retail
- Net income up 3% year-on-year
- Total sales for the group grew 9% to P148.2 billion
- Continued expansion, particularly through new SaveMore branches, remains a key driver of the group’s performance as another 25 new branches were opened in 2011 from 14 in 2010
- Opened 34 new stores in 2011, increasing total stores to 169 stores by yearend. Breakdown: 41 department stores, 33 supermarkets, 65 SaveMore branches, and 30 hypermarkets
- Store expansion in 2012 will continue to focus on the provinces for the anchor stores located in the malls, while SaveMore will see its number of stores growing by 30 to 40 stores nationwide.
P9.1 billion from SM Prime Holdings, Inc. (SM Prime)
- Net income up 15% year-on-year from P7.9 billion in 2010
- Revenues reached P26.9 billion, up 13% and include operations of 4 SM malls in China (located in cities of Xiamen and Jinjiang in Southern China, Chengdu in Central China, and Suzhou in Eastern China) that contributed P889 million net income in 2011 from P428 in 2010
- Consolidated rental revenues contributed 85% to the SM Prime’s total revenues, and grew by 14% to P22.8 billion. Same-store rental grew 7%
P4.18 billion from SM Development Corporation (SMDC)
- Net income up 38% from P3.02 billion in 2010
- Consolidated revenues amounted to P16.92 billion, higher by 69% year-on-year, mainly derived from real estate operations
- SM Residences and M Place products fueled SMDC’s notable 2011 results (SMDC currently has 15 residential projects under its SM Residences brand and 2 projects under the M Place brand
- For 2012, 5 more new residential condominium projects will be launched in Metro Manila