MANILA - SM Investments Corporation (SMIC) reported a consolidated net income of P7.1 billion in the first half, down 69 percent from the P23 billion it booked in the same period last year as the coronavirus pandemic disrupted business operations.
SMIC’s retail, property and banking businesses all saw sharp declines in their incomes as the COVID-19 pandemic and the ensuing lockdowns sapped sales.
“Our half year financial results are within our overall expectations, given the context of the lockdown due to the COVID-19 outbreak which had a greater impact in the second quarter. The results also reflect the group’s continued financial prudence and conservative balance sheet after our banks made substantial provisions for potential customer delinquencies,” said SMIC president and CEO Frederic DyBuncio.
The conglomerate’s food retail and residential property businesses were notable exceptions as they posted revenue growth despite the pandemic. Food retail revenues grew 15 percent with Alfamart posting an increase of 32 percent in revenues in the same period.
SM Retail booked a net income of P522 million in the first half of the year, a nearly 91 percent drop from the P5.7 billion it booked in the same period in 2019.
SM Prime Holdings posted a consolidated net income of P10.4 billion, down by 46 percent from P19.3 billion in the same period last year.
BDO Unibank booked P4.3 billion in profits in the first half, down 78 percent from the P20.1 billion in the same period last year as the bank allotted P22.4 billion for potential delinquencies due to the COVID-19 pandemic.
China Banking Corporation (Chinabank) however posted P5.2 billion in net income in the first half, up 24 percent year-on-year.
SMIC said Chinabank achieved this even as it ramped up provisions more than fourteen times to P4.8 billion in anticipation of the impact of COVID-19 and ongoing quarantine measures on asset quality.
The conglomerate said that as of end-June 2020, its total assets stood at P1.2 trillion.