SMIC recurring income up 16% at P16.6B

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HENRY Sy-led SM Investments Corp. (SMIC) said Wednesday its recurring income for the first half of the year rose 16 percent from a year ago driven by a strong economy and resilient consumer sentiment.

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“Income grew 9 percent to P16.6 billion. Excluding one-time items in 2016, recurring income increased 16 percent in the first six months,” it said in disclosure to the Philippine Stock Exchange (PSE)

“Even without the benefits of an election year, we saw sustained growth across all our core businesses, driven by the strong economy and resilient consumer sentiment. SM will continue to capture this momentum through nationwide expansion and by investing in high growth opportunities,” SM President Frederic DyBuncio said.

SMIC’s property businesses made the largest income contribution at 42 percent followed by banks with 36 percent and retail with 22 percent.

SM Retail reported sustained growth of 6 percent in total sales to P131.6 billion while its net income jumped to P5.2 billion.

SM Prime Holdings, on the other hand, reported consolidated net income of P14.4 billion, or 14 percent higher than the P12.59 billion registered in the same period last year.

Banking subsidiaries BDO Unibank, Inc. and China Banking Corp. reported P13.3 billion and P3.6 billion profits, respectively.

As of end-June 2017, total assets of SMIC grew 17 percent to P916.3 billion.

SM maintains a healthy balance sheet with a conservative gearing ratio of 43 percent net debt to 57 percent equity.

SM increased its investments in its subsidiaries in the first half with the P60 billion stock rights issue of BDO in January 2017 and P15 billion for China Bank in May 2017, as well as its acquisition of stakes in logistics company 2GO Group and Philippines Urban Living Solutions, the operator of a “dormitel” (dormitory/hotel) chain under the brand, “MyTown”.

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