SMIC 3M 2024 Consolidated Results

  • 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

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

SM Investments Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 07:40:02 UTC.