MANILA, Philippines - Philippine mall-to-banking conglomerate SM Investments Corp. (SMIC) said on Wednesday its net income rose 14% to P16 billion in 2009 from P14 billion in the year before, largely boosted by its retail business.

The growth in its earnings was on the back of a 9% increase in consolidated revenues to P160.1 billion from P147.5 billion.

"We are pleased to report that SM achieved its goals in 2009 in spite of the formidable challenges brought about by the spate of natural calamities in the country and the continued weakness in the global economy," said SMIC President Harley Sy.

"We continue to learn from every crisis situation that it pays to stay very focused on our strengths and on our long-term plans for further expansion, keeping in mind the synergies we can tap among our different businesses to achieve greater financial and operational efficiency," he added.

SMIC's retail merchandising division contributed the bulk or 35.3% of the consolidated net income, with a net income of P4.4 billion, up 27.9% year-on-year.

The group's banking subsidiaries, Banco de Oro Unibank Inc. (BDO) and China Banking Corp., accounted for 27.6% or the second-largest share of SMIC's earnings.

BDO's net income surged 173% to P6.1 billion while China Bank's went up 42.5% to P4 billion. Both banks enjoyed strong growth in their core businesses.

SMIC's mall development arm, SM Prime Holdings Inc., recorded a 10% rise in earnings to P7 billion, which included the operations of its 3 SM malls in China. This unit accounted for 26.1% of SMIC's total profit.

Meanwhile, real estate unit SM Development Corp. reported that its net income from real estate operations soared 250% to P392 million in 2009 from P112 million in the previous year. It said pre-selling of condominium units remained strong amid an increase in unit prices.

Owned by one of the country's richest men Henry Sy, SMIC is the biggest mall and cinema operator in the Philippines.

It said earlier it would earmark P40.6 billion for capital expenditures in 2010. Bulk of the amount would be spent to build malls, while the rest would go to the property, retail and hotel divisions.

SMIC is banking on the continued inflow of dollar remittances from overseas Filipinos to spur its businesses. Remittances are expected to grow 6% this year, keeping domestic consumption afloat.