SMIC Maintains Positive Outlook Amidst Stable Economic Conditions
SM Investments Corp. (SMIC) is projecting a continued steady and positive performance for the remainder of 2025. This optimistic forecast is significantly bolstered by resilient consumer spending within the country and a consistent growth in bank lending, which together signal a healthy domestic economy. According to President and CEO Frederic C. DyBuncio, these trends are supported by favorable macroeconomic conditions in the Philippines, including a stable first-quarter gross domestic product (GDP) growth of 5.4% and a sustained easing of inflation. Despite the presence of global uncertainties that could potentially impact markets, SMIC remains confident in the Philippines’ economic fundamentals and shares the overall positive sentiment for the rest of the year. The company’s diversified business model, which spans banking, property, and retail, positions it well to navigate potential headwinds and capitalize on the prevailing stability in the local market, ensuring a robust end to the year and providing a solid foundation for future growth in its various sectors.
Core Businesses Drive Strong First-Half Financial Results
The positive outlook for the second half of the year is firmly rooted in the company’s strong performance during the first six months. For the first half of 2025, SMIC reported a solid 6% increase in its consolidated net income, which reached a substantial P42.6 billion. This profitability was matched by a corresponding 6% rise in consolidated revenue, which totaled P319.2 billion. These robust financial results were overwhelmingly driven by the strong performance of its core businesses. The banking segment, which includes BDO Unibank and China Banking Corp., was the largest contributor, accounting for a significant 50% of the company’s net earnings. This was followed by the property division at 28% and the retail sector at 15%. Within the banking sector, both BDO Unibank and China Banking Corp. posted strong net income growths of 3% and 14%, respectively, highlighting the sector’s resilience and profitability even in a dynamic financial landscape. This strong contribution from multiple sectors demonstrates the company’s well-diversified and strategically managed portfolio of business interests.
Diverse Portfolio and Rental Income Fuel Growth
Beyond the strong banking performance, the company’s retail and property sectors also contributed significantly to the positive results. The retail segment, led by SM Retail, saw its net income grow by 10% on the back of higher revenues from its department stores and food retail businesses, indicating strong consumer demand and effective operational strategies. Similarly, the property business, which is primarily led by SM Prime Holdings, reported an impressive 11% increase in income. This growth was largely fueled by rental revenue, which made up the majority of its total revenue, underscoring the strength and stability of its expansive mall and commercial real estate portfolio. The company’s portfolio investments also delivered a profitable performance, with Philippine Geothermal Production Co., NEO, and the 2GO Group being among the top contributors to its income. The company’s total assets also grew by 2% to a staggering P1.7 trillion. Despite this positive financial report, SMIC’s shares dipped slightly by 0.3% on Wednesday, closing at P825 per share, a minor fluctuation that may be a result of short-term market dynamics rather than a reflection of the company’s fundamental strength.
