MANILA, Philippines – SM Investments Corporation (SMIC) has reported a 53% growth in its year-end 2022 net income, fueled by the strong results of its business units in retail, property, and banking.

SMIC’s net income rose to P61.7 billion from P40.4 billion, as consolidated revenues improved by 28% to P553.8 billion from P432.4 billion in 2021.

The Sy-led conglomerate derived most of its net income from its investments in banking, which contributed 45% to net income, followed by property at 23%, retail at 21%, and portfolio investments at 11%.

Under SMIC’s banking business segment, BDO Unibank also posted strong growth, with its net income up to P57.1 billion from P42.8 billion, backed by increases in its gross customer loans and total deposits. China Banking (China Bank) also grew its consolidated net income by 27% to P19.1 billion.

SMIC’s property arm SM Prime Holdings reported P30.1 billion in consolidated net income, an increase of 38% from the previous year. Full rental fees in malls resumed in the second half of 2022, leading local mall rental incomes to nearly double.

SM Retail saw net income rise 86% to P17.9 billion, with SMIC attributing the growth to the return of face-to-face classes and a revival in holiday spending toward the end of 2022.

The property business of the company, SM Prime Holdings, recorded a 38% increase in its net income to P30.1 billion, while consolidated revenues jumped by 29% to P82.3 billion.

SMIC’s total assets expanded by 9% to P1.5 trillion, with a gearing ratio of 35% net debt to 65% total equity.

“All of our business units delivered strong results, reflecting the Philippines’ economic recovery last year and the actions we took during the pandemic,” SMIC president and chief executive officer Frederic DyBuncio said in a statement on Tuesday, February 28.

“We increased our stakes in a number of companies that are investments in the growing Philippine economy and a testament to our commitment to sustainability. These companies are all profitable and generating significant contributions to our group earnings,” DyBuncio added.

SMIC’s core investments are in BDO Unionbank, China Bank, SM Prime Holdings, SM Markets, WalterMart, Alfamart, The SM Store.

It also has equity investments in Belle Corp., Atlas Mining, CityMall, 2GO Group, MyTown, GrabPay, Goldilocks, AirSpeed, and others. – Rappler.com

[ANALYSIS] Fastest economic growth in 46 years? Some context and caveats