SM Investments Corp. saw 2017 net income rise 6 percent to P32.9 billion, from P31.2 billion in the previous year, on the back of strong economic growth coupled with nationwide expansion plans.
Consolidated revenues in the same comparable period grew to P396.1 billion, or 9 percent higher from the P363.4 billion in 2016.
Of the company’s overall businesses, its property unit SM Prime Holdings, Inc. contributed 40 percent of the total earnings, followed by its banking arm BDO Unibank, Inc. with 38 percent, and SM Retail, Inc. with 22 percent.
In 2017, SM Prime was able to book P27.6 billion in recurring net income, higher by 16 percent versus the P23.8 billion registered in the prior year.
The company attributed growth in profit to increased sales from new mall and residential projects, underpinned by the sustained economic growth.
As of end-December last year, SM Prime booked a total of 67 shopping malls in the Philippines and seven in China.
SM Prime reported consolidated revenues of P90.9 billion for 2017, up 13.9 percent from the P79.8 billion registered in 2016. Meanwhile, overall operating income grew 15 percent to P40.6 billion from P35.3 billion the previous year.
Banking unit BDO Unibank registered an all-time high net income of P28.1 billion in full-year 2017, up 7.6 percent from a year ago backed by strong growth from all businesses.
China Banking Corp., meanwhile, grew by 15 percent to P7.4 billion versus the P6.45 billion in 2016 on the back of a robust performance from core and fee-based businesses.
Lastly, SM Retail’s net income stood at P10.4 billion, down 1.88 percent versus the P10.6 billion in 2016.
“Our core businesses continued to deliver strong results in 2017 with recurring net income growth of 9 percent, driven by overall growth in the economy and our nationwide expansion plans,” SM President Frederic DyBuncio told the stock exchange on Wednesday.
“Our property and specialty retail businesses delivered particularly strong results. During the year SM made substantial investments in its banks and in new business opportunities, which we expect to contribute to higher earnings growth in future years,” he added.
SM’s total assets as of end-2017 grew by P100 billion to P960.1 billion.
Last year, it participated in the rights offering of both BDO and China Bank and acquired significant stakes in logistics firm 2Go Group, Inc. and dormitory developer Philippine Urban Living Solutions.