SM Investments Q1 income jumps 13% to P6B

Rappler.com
The increase is driven by the strong performance of its core businesses, mainly banking

MANILA, Philippines [UPDATED] – The strong performance of its core businesses drove SM Investments Corp.’s (SMIC) earnings up 13% to P6 billion in the first quarter of 2012.

SMIC, in a statement, said its consolidated revenues for the end-March quarter went up 16% to P49.7 billion, thanks to higher contributions from its core units in banking, retail, mall development and real estate.

It said the banking group accounted for the lion’s share of earnings, with 32.3%, followed by the retail group, with 26.7%. Shopping malls and real estate contributed 25.3% and 15.7% of earnings, respectively.

“With the prevailing positive outlook on the domestic economy, together with the expected resilience of our subsidiaries, we remain optimistic that SM will attain its growth and expansion targets for the rest of the year,” SMIC president Harley Sy said.

SMIC owns Banco de Oro Unibank Inc. (BDO), the country’s largest lender by assets; SM Prime Holdings Inc., the country’s biggest mall operator and developer; the SM hypermarkets, supermarkets, department stores and SaveMore outlets under the retail group; and real estate developer SM Development Corp.

BDO posted a 15% rise in first-quarter net income to P2.8 billion, while SM retail booked a 20% increase to P1.1 billion. 

Earnings of SM Prime and SM Development went up 15% to P2.43 billion and 33% to P1.21 billion, respectively.

SMIC is owned by the Philippines’ richest man, Henry Sy. – Rappler.com