Banks continued solid growth driven by core businesses
Retail growth driven by Food retailing
Conservative gearing and strong balance sheet maintained
Portfolio investments contributed 7% of total earnings
Portfolio
Investments
SM Investments
3M 2024
Chg
Retail
7%
Revenues
144.0
4%
12%
Earnings
18.4
6%
Net Income
Assets
1,602.4
1%
Mix
Net Debt:Total Equity
33 : 67
29%
Figures in PHP B except percentages
Property
52%
Banking
1
Banking - BDO
Sustained contribution from core businesses
3M 2024 ROCE at 14.3%
Stable asset quality
NPL ratio lower at 1.88%
NPL Cover at 181%
Solid capital position with Book Value up 12%
BDO
3M 2024
Chg
Net Income
18.5
12%
Net Interest Inc.
49.0
13%
Other Income
20.9
11%
Gross Loans
2,922.6
13%
Deposits
3,631.7
13%
NIM
4.63%
NPL Ratio
1.88%
CET 1
13.6%
CAR
14.8%
Figures in PHP B except percentages
2
Banking - China Bank
China Bank
3M 2024
Chg
Net Income
5.9
18%
Net Interest Inc.
15.0
18%
Gross Loans
804.8
11%
Deposits
1,229.0
13%
NIM
4.42%
NPL Ratio
1.80%
CET 1
15.3%
CAR
16.2%
Figures in PHP B except percentages
Robust growth of core businesses
Asset quality remains stable
NPL ratio eased to 1.80%
NPL Cover at 143%
Cost to income ratio at 48.0%
Healthy ROE at 15.5%
Book value improved by 11%
3
Retail
SMRETAIL
Revenue
Chg
NI
Chg
Total Retail
93.8
3%
3.1
-23%
SMSTORE
22.4
-4%
0.2
-70%
Specialty
20.4
-1%
1.2
-27%
Food Group
57.0
6%
2.0
-9%
Figures in PHP B except percentages
Store expansion and volume growth drove Food revenues higher by 6%
Discretionary categories impacted by moderating consumer spend in key categories
4
Moderating Consumer Spending
Specialty Retail Category Sales Growth YoY
16%
5%
3%
-4%
Home
Kids
Fashion
Health and Beauty
Note: Represents total category growth, does not reflect ownership % in individual formats
5
Property
SMPRIME
3M 2024
Chg
Total Revenues
30.7
7%
Malls
18.2
7%
Residential (Primary)
8.5
10%
Other Businesses
3.4
9%
Reservation Sales
26.5
-26%
Net Income
10.5
11%
Figures in PHP B except percentages
Mall revenues grew 7% driven by mall rental income higher by 8%
Philippine Mall revenues grew 9%
Other businesses, which include Offices, Hotels and Convention centers, grew 9%
Residential revenues also higher by 10%, lower Reservation sales
6
2024 Malls' Expansion
SM City Laoag
SM City J Mall (Mandaue City, Cebu)
SM City San Fernando La Union
SM City Caloocan
SM City J Mall (Mandaue City, Cebu)
123k GFA
Target Launch 2H 2024
SM City Laoag
113k GFA
Target Launch 2H 2024
SM City Caloocan
94k GFA
Target Launch 1H 2024
SM City San Fernando La Union
111k GFA
Target Launch 2H 2024
7
Portfolio Investments Financials
(As of 3M 2024)
Revenue
1.4
1.1
3.1
4.2
5.5
(Php Bn)
Revenue Growth
-25.6%
11.8%
-0.3%
-19.1%
12.4%
(%)
Net Income
0.5
0.6
0.3
0.2
0.6
(Php Bn)
Net Income Growth
-59.6%
10.6%
25x
5.1%
113.1%
(%)
8
3M 2024 Results Key Messages
Consolidated results driven by continued underlying economic strength
Sustained Banking performance contributed 52% of net income
Food Retailing continued growth and footprint expansion
Non Food Retailing impacted by moderating consumer spending in key discretionary categories
Property growth driven by Malls, with lower reservation sales in Residential
Portfolio Investments contributed 7% of net income, with strong growth plans in place
Conservative gearing and healthy balance sheet
Group remains cautiously optimistic for 2024
9
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SM Investments Corporation published this content on
08 May 2024 and is solely responsible for the information contained therein. Distributed by
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08 May 2024 07:40:02 UTC.
SM Investments Corporation is engaged in retail, banking and property businesses. The Companyâs segments include Property, Retail, Banking and Portfolio Investments. The Property segment is involved in mall, residential and commercial development and hotel and convention center operations. The Retail Segment is engaged in the retail/wholesale trading of merchandise, such as dry goods, wearing apparel, food and other merchandise. The Banking segment includes its equity in net earnings in BDO Unibank, Inc. and China Banking Corporation. The Portfolio Investments segment includes 2GO, PGPC, Neo subsidiaries and associates, Atlas Consolidated Mining and Development Corporation, Belle Corporation, GBI and others. The mall segment develops, conducts, operates and maintains the business of modern commercial shopping centers and all related businesses. The residential and commercial segments are involved in the development and transformation of residential, commercial and others.