SM Investments Corporation Announces Robust 2025 Financial Performance
SM Investments Corporation, the premier holding company of the SM group, has unveiled a significant financial upswing for the year 2025. The corporation reported a consolidated net income of ₱90.5 billion, marking a notable 10 percent increase from the ₱82.6 billion recorded in the previous year. This impressive growth was complemented by a 4 percent rise in consolidated revenues, which reached ₱681.7 billion, up from ₱654.8 billion in 2024.
Leadership Insights on Resilient Growth
Frederic C. DyBuncio, president and chief executive officer of SM Investments, attributed the strong full-year results to a resilient fourth quarter performance. "Our achievements reflect resilient consumer spending, improved operational efficiencies, and prudent financial management across our core businesses," DyBuncio stated. He further expressed optimism about the Philippine economic outlook, citing factors such as easing inflation, steady employment, stable interest rates, and sustained remittance flows that bolster household incomes and provincial market expansion.
Sectoral Breakdown of Net Income Contributions
The corporation's net income was diversified across its key sectors:
- Banking led the way, contributing 49 percent of the consolidated net income.
- Property followed with a 27 percent share.
- Retail accounted for 18 percent.
- Portfolio Investments made up the remaining 6 percent.
Retail Segment Performance
SM Retail reported a slight 1 percent increase in net income to ₱21.1 billion, with retail revenues growing 5 percent to ₱458.1 billion. DyBuncio highlighted steady department store growth, driven by strong performance in the kids category during the fourth quarter. Food retail benefited from sustained spending on essential items, while specialty retail saw growth across health and beauty, fashion, kids, and home categories. The stationery section also performed well due to increased gadget purchases.
Banking Sector Achievements
BDO Unibank, Inc. achieved a record net income of ₱87.2 billion, a 6 percent increase from the previous year, supported by solid core business performance. Net interest income grew 9 percent, with gross customer loans climbing 13 percent to ₱3.7 trillion. Asset quality improved, with the Non-Performing Loan ratio declining to 1.68 percent.
China Banking Corporation also reported a record net income of ₱28 billion, up 13 percent, driven by its core lending business. Gross loans surpassed ₱1 trillion for the first time, reaching ₱1.1 trillion, while deposits grew 9 percent to ₱1.4 trillion.
Property Division Growth
SM Prime Holdings, Inc. saw its net income expand 7 percent to ₱48.8 billion, fueled by stronger commercial property revenues and disciplined cost management. Consolidated revenues reached ₱141.1 billion, with the mall segment contributing 60 percent of total revenues, followed by residential at 30 percent, hotels and convention centers at 6 percent, and offices and warehouses at 4 percent.
Portfolio Investments and Balance Sheet Strength
Portfolio investments were primarily driven by Philippine Geothermal Production Company and NEO buildings, which together contributed 56 percent of total portfolio income. 2GO and Goldilocks added a combined 20 percent contribution. On the balance sheet front, total assets of SM Investments increased 7 percent to ₱1.8 trillion, with a conservative gearing ratio of 30 percent net debt to 70 percent equity.
Looking forward, DyBuncio emphasized the group's commitment to maintaining its expansion strategy and disciplined capital allocation, while continuing to strengthen its ecosystem to serve more customers across the Philippines.
