SMIC nine-month net income rises 9% to P70.2 billion on banking, property, retail growth

SM Investments Corp. posted a 9% rise in consolidated net income to P70.2 billion for the first nine months of 2026, driven by growth in banking, property, retail, and portfolio investments. Consolidated revenues increased 5% to P506.8 billion, with banking contributing the largest share of net inco

SM INVESTMENTS CORP. (SMIC) reported a 9% increase in consolidated net income to P70.2 billion for the first nine months of 2026 from P64.4 billion a year earlier, supported by growth across its banking, property, retail, and portfolio investment businesses. Consolidated revenues rose 5% to P506.8 billion from P482.3 billion in the same period last year, the Sy-led conglomerate said in a disclosure to the Philippine Stock Exchange on Wednesday.

Banking accounted for the largest share of consolidated net income at 48%, followed by property at 26%, retail at 15%, and portfolio investments at 11%. “Ongoing resilient consumer demand supported retail and malls, while portfolio investments delivered stronger earnings,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

The conglomerate’s banking businesses recorded double-digit loan growth during the nine-month period. BDO Unibank, Inc.’s loan portfolio expanded 16%, with double-digit increases across all segments, while China Banking Corp. reported a 19% increase in net loans.

SM Retail, Inc. posted a 7% increase in net income to P13.1 billion, while revenues grew 5.4% to P335.3 billion. The company attributed the increase to higher sales across its food and specialty retail businesses, including demand for essential goods and selected discretionary products. Food retail recorded sales growth across its supermarket and minimart formats, while specialty retail benefited from demand for alternative power sources, toys, stationery, and pet products.

The group’s mall business reported a 10% increase in revenues to P63.7 billion, supported by additional leasable space, higher occupancy, and demand for dining and other leisure activities. Portfolio investments accounted for 11% of SMIC’s consolidated net income during the period. Among these investments, Atlas Consolidated Mining and Development Corp. returned to profitability, which the conglomerate attributed to higher copper prices. 2GO Group, Inc. reported a 15% increase in revenues, supported by its sea travel and container services businesses. Philippine Geothermal Production Co., Inc. also recorded a 13% increase in revenues, driven by higher steam prices linked to the Wholesale Electricity Spot Market.

As of Sept. 30, SMIC’s total assets stood at P1.8 trillion, with a net debt-to-equity ratio of 31:69. The company said more than 60% of the parent company’s annual cash flows came from nonlisted businesses, including SM Retail, alongside dividends received from its listed subsidiaries. “All established businesses fund their own operations and expansion plans and do not require funding from the parent,” SMIC said. The conglomerate said it intends to increase shareholder returns through higher dividends and share repurchases. “At the parent, we continue to allocate capital carefully and maintain the financial capacity to invest for the long term,” Mr. DyBuncio said.

At the local bourse on Wednesday, shares in SM Investments fell P8, or 1.38%, to close at P570 apiece.