SM Investments net income down 54 pct in Jan-Sept period as pandemic bites


Posted at Nov 04 2020 04:06 PM

SM Investments net income down 54 pct in Jan-Sept period as pandemic bites 1

MANILA - SM Investments Corporation (SMIC) booked a net income of P15.2 billion in the January to September period, lower by 54 percent from P33.1 billion it posted in the same period last year, the company disclosed to the stock exchange Tuesday.

SMIC, which has interests in retail, property and banking, saw revenues and income from its various businesses take a big hit from the pandemic. 

Consolidated revenues in the first three quarters of the year fell 18 percent to P286.7 billion. 

SMIC’s retail operations saw revenue fall 15 percent compared to the same period last year, while net income decreased 73 percent.

The conglomerate’s property arm, SM Prime Holdings, also reported its consolidated net revenues fell 29 percent, while net income fell 48 percent.

Its banking businesses meanwhile saw mixed results as BDO Unibanks’s net income fell 48 percent as it made provisions for loan delinquencies. China Banking Corp meanwhile booked a 23 percent increase in its net income.

SMIC however noted that revenues improved in the third quarter, rising 36 percent to P101.1 billion from P74.4 billion in the second quarter as quarantine restrictions eased. 

“We are encouraged by marked improvements in our results quarter-on-quarter as we saw renewed consumer activity. We remain watchful of underlying demand as we continue to face headwinds in the economy in areas such as employment and remittances,” said SMIC President Frederic DyBuncio.

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SMIC said it has been helping Micro Small and Medium Enterprises across the group through marketing campaign support and by waiving fees to help sustain their operations. The Sy family’s conglomerate said it has also been giving credit support and improved cash access to its banking clients across the country.

Banking accounted for 50 percent of SMIC’s reported net earnings from core businesses.

SMIC shares were up 2.21 percent at P996 per share at the close of Tuesday's trading.