Credit to Author: Tyrone Jasper C. Piad| Date: Fri, 28 Feb 2020 17:03:21 +0000
LISTED SM Investment Corp.’s net income rose to P44.6 billion last year on the strong financial performance of its property and banking units.
In a disclosure on Friday, the Sy-led conglomerate said the amount was a 20-percent increase from the P37.1 billion posted in 2018.
Consolidated revenues, meanwhile, climbed by 12 percent to P501.7 billion from P449.8 billion a year ago.
“We had a good year in 2019 with all our core businesses delivering strong revenue and profit growth,” SM President Frederic Dy Buncio said in the disclosure.
The SM Group’s real estate subsidiary, SM Prime Holdings Inc., saw its consolidated net income jump by 18 percent to P38.1 billion from the year-earlier P32.2 billion on the back of strong mall and residential revenues.
Local mall revenues grew by 8 percent to P57.8 billion and residential revenues, coming from SM Development Corp., rose by 24 percent to P45.2 billion.
SM Prime’s mall portfolio in the Philippines has a gross floor area of 8.5 million square meters (sqm) spread across 74 malls. In China, it has seven malls with 1.3 million sqm.
Banking arm BDO Unibank Inc. saw its net income expand by 35 percent to P44.2 billion from P32.7 billion in 2018, fueled by robust core recurring earnings. Its net interest income climbed by 22 percent to P119.9 billion from P98.3 billion the previous year due to an improving net interest margin.
China Banking Corp.’s net profit increased by 24 percent to P10.1 billion, while its net interest income rose by 14 percent to P26.1 billion.
SM Retail Inc., which includes non-food and food stores, registered a 10-percent boost in net income at P12.5 billion last year. Its gross revenues inched up by 9 percent to P366.8 billion.
The firm opened 412 new outlets last year, bringing the total to 2,799 stores.
“We are confident about the long-term growth potential of the country and we will continue to expand. We are committed to maintain a strong balance sheet that gives us the financial flexibility to fend off short-term risks and to take on opportunities that may come our way,” DyBuncio said.
SM shares decreased by P12.50 or 1.27 percent to end at P974.50 each on Friday.