SM Investments Earns PHP42.6B in H1 on Strong Sector Gains

SM Investments Corporation (SMIC) has once again demonstrated the power of its integrated business model, posting a consolidated net income of PHP42.6 billion for the first half of 2025—a 6% improvement over the same period last year. Backed by robust performances across banking, retail, and property, total revenues also rose 6% to PHP319.2 billion.

“Our diverse business portfolio continues to benefit from the country’s economic stability and easing inflation,” said SMIC President and CEO Frederic C. DyBuncio. “We’re seeing healthy momentum in lending, retail demand, and property utilization, which gives us confidence for the rest of the year.”

Banking Fuels Half the Gains

Banking remained the largest contributor, accounting for 50% of total earnings. BDO Unibank posted PHP40.6 billion in net income, up 3%, as net interest income and customer loans grew by 7% and 14%, respectively. China Bank followed suit with a PHP13.0 billion profit—a 14% jump on the back of stronger core lending and prudent financial strategy.

Retail Momentum Builds on Consumer Confidence

Retail’s resurgence continued, contributing 15% to earnings as SM Retail reported a 10% profit increase to PHP8.4 billion. Revenue hit PHP211.8 billion, driven by consumer tailwinds such as early school openings and sustained spending. Department stores saw an 11% revenue jump, while food retail gained 8%.

Record-Breaking First Half for Property

SM Prime Holdings reached new heights with a record PHP24.5 billion in net income, an 11% increase fueled by strong mall and residential performance. Mall rentals alone contributed PHP17 billion, up 14%, reflecting high occupancy and expansion into new locations. Residential revenues saw a modest 2% uptick, while office and logistics units added 9% growth.

Portfolio Investments Strengthen Diversification

Beyond its core sectors, SMIC’s portfolio investments provided additional growth, led by Philippine Geothermal Production Company (35%), NEO (30%), and 2GO (16%). These accounted for 7% of the conglomerate’s total earnings, reinforcing its commitment to strategic diversification.

Financial Resilience Anchors Growth

SMIC closed the first half with PHP1.7 trillion in assets and a healthy balance sheet. With a net debt-to-equity ratio of 32:68, the company maintains ample financial flexibility to navigate future opportunities.

As 2025 progresses, SMIC remains well-positioned to capture growth across its interconnected ecosystem—proving once again that resilience and synergy are its strongest assets.