Village Connect
SM Investments Corporation opened 2025 with solid financial performance, reporting a 9% rise in consolidated net income to PHP20.1 billion for the first quarter, up from PHP18.4 billion in the same period last year. The company also posted a 6% increase in consolidated revenues, reaching PHP152.0 billion from PHP143.7 billion year-on-year, signaling resilient consumer demand and strong operational execution.
“We are encouraged by the positive start to 2025,” said Frederic C. DyBuncio, President and CEO of SM Investments. “Consumer confidence remains good and our businesses are well-positioned across all categories. The easing inflation, which dropped to 1.4% in April, further boosts spending and sentiment.”
Banking remained the largest contributor to the group’s earnings, accounting for 51% of total net income. Property followed with 29%, retail with 14%, and portfolio investments at 6%.
Retail Segment Rides Consumer Confidence
SM Retail continued to benefit from healthy consumer activity, reporting an 18% increase in net income to PHP3.6 billion and a 7% rise in revenues to PHP100.3 billion. Food retail grew 8% to PHP61.5 billion, with improved margins in SM Markets.
Department stores posted a 6% revenue increase, while specialty retail climbed 7%, driven by strong discretionary spending, especially in fashion and health & beauty categories.
Banking Drives Core Earnings
BDO Unibank, Inc. contributed PHP19.7 billion in net income, buoyed by double-digit loan growth and a robust fee income performance. China Banking Corporation posted PHP6.5 billion in net income, a 10% increase from last year, with net interest income up 14% to PHP17.1 billion. The group’s gross loans expanded 19% to PHP954 billion, while total deposits rose 8% to PHP1.3 trillion, showing healthy business and consumer confidence.
Property Performance Anchored by Malls
SM Prime Holdings, Inc. recorded an 11% jump in net income to PHP11.7 billion. Revenues rose 7% to PHP32.8 billion, driven by strong performance in malls, which contributed PHP8.1 billion, up 13% on higher foot traffic and occupancy. Residential income inched up 4% to PHP2.1 billion, while offices and warehouses grew 15% to PHP1.2 billion. Hotels and convention centers added PHP362 million, a 17% rise from last year.
Balanced Growth Across Portfolio
Portfolio investments delivered stable returns, led by NEO (38% of portfolio income), Philippine Geothermal Production Company (36%), and Belle Corporation (11%). With total assets of PHP1.7 trillion and a conservative gearing ratio of 31% net debt to 69% equity, SM Investments remains well-capitalized to support growth and innovation across its core businesses.
