MANILA, Philippines - SM Investments Corp., owned by the country's richest man Henry Sy, Sr., on Thursday reported its net income fell by 3.1 percent in the first half of the year, on lower profits from its banking business.
SM Investments said its net income dropped to P12.3 billion in the January to June period, from P12.7 billion net income a year ago. It noted that the consolidated net income in 2013 had included exceptional trading gains in its banking businesses.
Consolidated revenues jumped 7.2 percent to P130.9 billion in the January to June period, from P122.1 billion a year ago.
"SM sustained its solid performance in the first half with strong underlying revenue and income growth across our core businesses. The banks continued to drive profitability while the property group delivered steady growth on both top and bottomlines. And even as competition continues to intensify, the retail business has been resilient and posting positive same store sales and gross margins are stabilizing. Overall we are optimistic that we are on track for 2014," SM President Harley T. Sy said.
Property accounted for 40.5 percent of SM Investment’s consolidated net income, while banks accounted for 39.8 percent and retail 19.7 percent.
SM Prime Holdings' consolidated net income jumped 11.7 percent to P9.8 billion in the first half of 2014, as consolidated revenues rose 7.2 percent P33.4 billion in the same period.
Meanwhile, BDO Unibank said it posted a net income of P11.05 billion in the January to June period, 22 percent lower than the previous year due to extraordinary trading gains booked during the same period in 2013.
At the same time, SM Retail reported a slight decline in net income to P2.8 billion in the first half of 2014, from P2.9 billion a year ago. Sales jumped 9.1 percent to P91.2 billion, as it remained the market leader with its stores in the country.
"The food retail business in particular is on an aggressive expansion mode to penetrate the informal sector and both urban and rural communities. In the department store business, the SM Store will continue to introduce fresh concepts and expand its stores nationwide through the expansion of SM malls in the provinces," the company said.
At the end of the first half, SM Retail has a total of 249 stores, consisting of 49 SM Stores, 40 SM Supermarkets, 41 SM Hypermarkets , 97 Savemore stores and 22 WalterMart stores.