SM Investments Corp. (SMIC) on Wednesday said its income in the first quarter rose by 5 percent to P9.5 billion, from P9 billion last year, partly as a result of its cost-reduction measures.
Consolidated revenues in the January-to-March period stood at P96.9 billion, lower by 13 percent, from P111.2 billion in the same period last year, due to the retail sales slump.
Banking accounted for 54 percent of SMIC’s reported net earnings from core businesses, followed by property at 33 percent, and retail at 13 percent.
“As our businesses adapt to a challenging operating environment and broader economic uncertainties, we continue to innovate and find new ways to service our customers’ needs. We have reduced our operating costs and are benefiting from the high levels of cost efficiency that we focused on during the last 12 months,” SMIC President and CEO Frederic C. DyBuncio said.
“We continue to invest in the well-being of our employees with our upcoming free vaccination initiative and provide critical support to our business partners, who are mostly small and medium enterprises. We strongly support health recovery efforts and remain optimistic about a strong recovery in due course.”
SM Retail reported first quarter revenues of P70 billion, lower by 14 percent compared to the same period last year. Retail net income, however, grew 36 percent to P1.6 billion from P1.2 billion in the same quarter last year, boosted by cost reductions. In food retail, significant savings were realized in utilities with the shift to more energy-efficient lighting and refrigeration.
Specialty stores likewise benefitted from cost reductions as net earnings grew 58 percent for this segment.
Shopping mall operator SM Prime Holdings Inc.’s income during the period fell 22 percent to P6.5 billion from the previous year’s P8.39 billion, as the economic effects of the pandemic affected many of its businesses.
Lender BDO Unibank Inc.’s income rose 19 percent P10.39 billion, from the previous year’s P8.76 billion due to the robust performance of its service fee businesses which compensated for the weak demand for loans. Loans dipped by 1 percent year-on-year to P2.2 trillion while total deposits went up by 2 percent to P2.6 trillion. China Banking Corp. sustained its profitability in the first quarter, posting a 61-percent increase in net income to P3.6 billion, from last year’s P2.2 billion. Net interest income rose 16 percent year-on-year to P9.2 billion, mainly due to the 52-percent drop in interest expense.
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