SM Investments Corporation (SM Investments) reported consolidated net income of PHP82.6 billion in 2024, a 7% increase from PHP77.0 billion in 2023. Consolidated revenues also grew by 6%, reaching PHP654.8 billion, up from PHP616.3 billion in the previous year.
“We ended 2024 with a strong performance, despite the high base of 2023 and inflationary headwinds during the year. Our core businesses all grew, supported by positive macroeconomic fundamentals and healthy consumer sentiment. The fourth quarter registered the highest revenue growth rate of 9.4%, giving us solid momentum into 2025,” said Frederic C. DyBuncio, President and CEO, SM Investments.
Of total net income, banking contributed the largest share at 49%, followed by property at 26%, retail at 18%, and portfolio investments at 7%.
Retail
SM Retail posted a net income of PHP20.9 billion, increasing from PHP19.9 billion in the previous year.
Retail revenues grew 5% to PHP434.5 billion, up from PHP412.9 billion in the previous year.
The food retail segment was the strongest performer, with 8% revenue growth, driven by expanded store networks and improved customer engagement. Specialty stores also saw solid performance, posting 3% revenue growth, while department store operations remained resilient.
“In retail, discretionary spending remained strong throughout the year, particularly in branded fashion, health and beauty, and household appliances. Meanwhile, food retailing gained momentum across all formats in the fourth quarter as inflation tapered,” Mr. DyBuncio said.
Property
SM Prime Holdings, Inc. (SM Prime) posted consolidated net income of PHP45.6 billion in 2024, up 14% from PHP40 billion the previous year driven by higher contributions from all its business segments.
Consolidated revenues during the same period rose 10% to PHP140.4 billion from PHP128.1 billion on higher rental income, real estate sales and revenues from services and experiential offerings.
Malls accounted for 55% of revenues, followed by residences at 34%, hotels and convention centers at 6% and offices and warehouses at 5%.
Banking
BDO reported PHP82.0 billion in net income, 12% higher than in 2023, supported by the solid performance across its core businesses. Net interest income increased 8% with the expansion in earnings assets and growth in the bank’s service businesses. Gross customer loans grew by 13% to PHP3.2 trillion with double-digit growth across all market segments.
Total deposits increased 6% to PHP3.8 trillion, with CASA (Current Account/ Savings Account) ratio at 71%.
Asset quality remained steady with non-performing loan (NPL) ratio at 1.83% and NPL coverage at 145%.
Meanwhile, China Banking Corporation booked a 13% increase year-on-year in net income to PHP24.8 billion, supported by the sustained strength of core businesses. The bank generated 21% higher revenues of PHP65.5 billion mainly from net interest income which grew 19% to
PHP63.5 billion on the back of asset base expansion and improvement in net interest margin.
Gross loans increased by 18% to PHP933 billion on higher loan demand across all customer segments. Total deposits grew by 12% to PHP1.3 trillion.
Taking a more proactive stance against portfolio risks despite the easing of its non-performing loans (NPL) ratio to 1.6%, the bank increased its credit provisions to PHP3.3 billion. The resulting
NPL coverage was higher at 139%.
Portfolio Investments
Portfolio investments continued to perform positively with Philippine Geothermal Production Company contributing 46% of total portfolio net income, NEO at 22% and Belle Corporation at 10%.
Expansion
In 2024, SM expanded by an additional 619 retail stores, two malls and 73 bank branches, with over 85% of its footprint in the provinces. As SM expands, it continues to broaden access to different markets and enhance synergies across its businesses.
Balance Sheet
Total assets of SM Investments increased 7% to PHP1.7 trillion, while the group maintained a conservative 31% net debt to 69% equity ratio.
To support its growth strategy, SM successfully priced a USD500 million bond issuance under its
USD3 billion Euro Medium-Term Notes (EMTN) program. This marked the group’s largest bond issuance since 2014, providing greater flexibility amid market volatility.
The company was recognized as the “Philippines Capital Market Deal of the Year” by International Financing Review Asia (IFR Asia) for this USD500 million five-year bond issuance in 2024. The deal, the largest five-year issuance by a Philippine corporate in 2024, reopened the market amid volatile conditions. This recognition also underscored SM Investments’ leadership in the capital markets and the strong confidence of global investors in the company’s financial strength.
The bond was priced at 5.466% yield, or 135 basis points over US Treasuries, tightening by 35 basis points from initial guidance.
