SMIC net income up 8% in 2016

SM Investments Corp. (SMIC) posted an 8-percent growth in net income last year, mainly on better results of its property business which accounted for 39 percent of total earnings.

The conglomerate recorded a P31.2-billion net income last year from P28.4 billion in 2015.

Property business SM Property Holdings Inc. (SMPH) accounted for 39 percent of total earnings, followed by BDO Unibank Inc. (37 percent) and retailer SM Retail Inc. (24 percent).

"Our core businesses performed well and continue to grow in line with the country's strong economic development,” SM President Harley T. Sy said.

SMPH notched a 14-percent increase in recurring net income at P23.8 billion, while consolidated revenues rose 12 percent to P79.8 billion.

“Revenues of its mall business, which includes rentals, cinema and event ticket sales and other revenues, grew by 9 percent to P48.6 billion due to added retail spaces in the last two years,” SMIC said.

SM currently operates 60 shopping malls in the Philippines, and seven in China.

BDO Unibank posted a net income of P26.1 billion. Net interest income grew by 15 percent to P65.6 billion, driven by the 16-percent growth in gross customer loans at P1.5 trillion.

For SM Retail Inc., total revenues grew by 8 percent to P276.5 billion, while net income grew by 7 percent to P10.6 billion from P9.9 billion.

“We are optimistic about continued development and that government plans for infrastructure, agriculture and tourism ... will enable broader regional growth,” Sy said.

“SM continues to prioritize regional investment and our nationwide expansion plans are focused on effective execution,” he added. — Jon Viktor Cabuenas/VDS, GMA News