Banking, mall businesses boost SMIC first-half income

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Henry Sy-led conglomerate SM Investments Corp. (SMIC) saw a significant increase in its first-half net income, which was driven mainly by its mall and banking businesses.

In a briefing held on Thursday, SMIC reported that its net income for the first semester of 2013 grew 16 percent to P12.6 billion from P10.9 billion in the same period last year.

The growth, according to the company, was driven by the increase in the profits of its banking and mall businesses.

Revenues of the group likewise climbed by 16 percent to P122.1 billion during the period from the P105.1 billion it registered in the previous year.


SMIC President Harley Sy said that the firm’s first-half financial results is ahead of its full-year target, as BDO Unibank Inc. delivered a “stellar” performance from trading gains.

“We expect the second half to normalize but still at the back of the strong growth expectations of all our core businesses. The Philippines is in a unique position to support a vibrant domestic consumer sector. This gives us reason to pursue our growth and expansion plans over the medium term,” Sy added.

The banking business of SMIC accounted for the largest share of its consolidated net income, contributing 49.7 percent of the total, while retail merchandising contributed 20 percent, followed by commercial centers or mall operations and real estate at 18.4 percent and 11.9 percent, respectively.

For the first semester of 2013, BDO announced that it doubled its net income to P14.1 billion from P5.8 billion during the

same period last year.

SM Prime Holdings Inc., the shopping mall business of the group, also grew its net income by 15 percent to P5.6 billion from P4.9 billion in the same period last year.

Revenues of SM Prime also expanded 14 percent to P16.6 billion from P14.6 billion in the same period last year.

SM Development Corp., the group’s property arm, reported that for the first half of 2013, its consolidated net income amounted to P2.8 billion, up 5.9

percent year-on-year, while its revenues from real estate sales stood at P11.9 billion.

SM’s retail operations, on the other hand, registered a net income of P3.1 billion, up 9.9 percent year-on-year in the first half of 2013, for a net margin of 3.7 percent.

At the end of the first half, SM retail had a total of 209 stores, consisting of 48 SM Department stores, 38 SM Supermarkets, 37 SM Hypermarkets and 86 SaveMore stores.

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