SM Investments profit jumps 11pct to P27.4-B in 2013

Posted at 03/03/2014 1:35 PM | Updated as of 03/03/2014 3:19 PM

MANILA, Philippines – Henry Sy's SM Investments Corp. on Monday said its 2013 profit jumped 11% to P27.45 billion from P24.67 billion in 2012 on the back of strong performance from its banking unit BDO Unibank, Inc. (BDO).

In a disclosure to the Philippine Stock Exchange, SM Investments said its revenue increased 13% to P253.53 billion in 2013 from P223.88 billion in 2012.

Its banking unit BDO posted a net income growth of 56% to P22.6 billion in 2013, from P14.5 billion in 2012. SM’s banking unit accounted for the largest share of the firm’s consolidated net income, with a contribution of 42.8%.

BDO’s gross customer loans grew 19% to P911 billion on broad-based expansion across key markets while total deposits jumped 44% to P1.3 trillion driven by steady growth in low-cost deposits as well as the inflow of maturing Special Deposit Accounts (SDA) funds from the Bangko Sentral ng Pilipinas (BSP).

The growth in loans and deposits contributed to a 20% hike in net interest income to P43.2 billion.

SM Prime Holdings, Inc. (SM Prime) posted combined net earnings of P16.27 billion in 2013 while SM Retail reported a net income of P5.6 billion.

Malls and real estate under the property group accounted for 35.9% while retail contributed 21.3%.

“SM’s full year earnings for 2013 reflect the overall progressive economic environment of the country which, however, is tempered by competitive dynamics and the effects of continuous climate change. With that in mind, SM is constantly evolving to take advantage of the enormous opportunities that are made available by a fast emerging economy. SM will remain focused on its core businesses of retail, property, and banking with portfolio investments in high-growth emerging sectors,” SM President Harley Sy said in a statement.