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Sy-led SMIC posts 22% jump in Q1 earnings

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The company attributed the increase to higher earnings from its banking, mall and property businesses

UP AND UP. Shoppers walk past a logo of the Philippines' largest shopping mall operator Shoe Mart (SM) in one of their stores in Manila. AFP Photo

MANILA, Philippines – Sy-led holdings firm SM Investments Corp. (SMIC) posted a 22% net income jump for the 1st quarter of 2013 compared to a year ago on the back of higher earnings from its banking, mall and property businesses.

In a disclosure to the PSE on Thursday, April 25, the company announced that its earnings grew to P7.4 billion in 2013 from P6 billion in 2012.

“We are encouraged by our 1st quarter results. With the continuing rise in remittances from overseas Filipinos, the expansion of the country’s BPO sector, and the recent credit upgrade of the Philippines to investment grade, we are confident of achieving even better results in the second quarter and beyond,” said SMIC President Harley Sy.

Banking arm BDO Unibank contributed the most to the group’s first quarter earnings at 59.7%. After that are malls (15.8%), retail (14.1%), and property (10.4%).

SMIC’s 1st quarter revenues grew by 15% to P56.8 billion from P49.6 billion during the same period last year.

  • BDO registered a 257% increase in net income to P10 billion from P2.8 billion.
  • SM Retail reported a 4% jump in net income to P1.2 billion. Its mall business, on the other hand, posted a 15% increase in consolidated net income to P2.8 billion from P2.4 billion.
  • SMIC’s property group reported a 19% increase in net income at P1.8 billion. The group’s residential development arm, SM Development Corporation (SMDC), posted a 12% hike in consolidated net income to P1.4 billion on the back of higher gross profit margins and increased economies of scale.

SMIC is the holding company for businessman Henry Sy, the Philippines’ richest man according to a Forbes list. The company posted a 16.3% jump in net income in 2012 due to the strong performance of its core business. –

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