PASAY CITY — SM Investments Corp. (SM) reported consolidated net income of ₱45.9 billion in the first half of 2026, up 8 percent from ₱42.6 billion a year earlier, as steady consumer demand and the strength of its diversified businesses supported growth.
Consolidated revenue rose 6 percent to ₱339.2 billion from ₱319.2 billion in the same period last year.
“Consumer spending in our retail stores and malls remained healthy despite recent economic shocks,” SM Investments President and CEO Frederic C. DyBuncio said. “The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient. Steady demand across our consumer-led businesses plus solid contributions from our portfolio companies continue to reflect the strength of our diversified business model. This gives us the confidence to keep investing for long-term growth.”
Banking accounted for 47 percent of net income, followed by property at 27 percent, retail at 15 percent, and portfolio investments at 11 percent.
Retail, malls benefit from steady demand
SM Retail reported a 5 percent increase in net income to ₱8.9 billion, while operating income rose 12 percent to ₱14 billion.
The company said it managed expenses effectively despite higher inflation, while resilient demand for everyday essentials and continued store expansion supported broad-based growth.
Food retail recorded steady sales growth across its supermarket and minimart formats.
Specialty retail also posted higher sales, led by the Home, Other Fashion and Kids categories.
The Home category benefited from continued demand for alternative power sources. Kultura and Crocs led growth in the Other Fashion category, while the Kids category gained from spending on toys, pet products and stationery.
As the group’s largest consumer-facing business, unlisted SM Retail also provides recurring cash flow to the parent company.
Consumer demand also remained strong in SM’s mall business, with revenue increasing 8 percent to ₱41.8 billion. Higher occupancy, stronger tenant sales, and improved operating efficiency supported the growth.
Banking remains the biggest earnings contributor
SM’s banking businesses posted loan growth in the midteens and remained the group’s largest earnings contributor, reflecting the continued strength of its core banking operations.
Portfolio investments also performed better, driven by a turnaround at Atlas Consolidated Mining and Development Corp. as higher copper prices boosted its performance.
2GO Group Inc. recorded revenue growth across all categories, supported by higher passenger volumes in its travel segment and increased logistics volumes from online purchases.
Philippine Geothermal Production Co. Inc. also reported higher revenue amid adjustments in energy prices.
SM said its scale, recurring income and broad exposure to the country’s consumer-driven economy allow it to generate steady cash flow across economic cycles.
The group plans to continue investing in expansion and long-term value creation, while the parent company focuses on using its strong cash flow to increase shareholder returns.
SM’s total assets stood at ₱1.82 trillion, with net debt accounting for 31 percent of its capital structure and equity at 69 percent.
“We remain positive about the outlook for the second half of the year, while staying mindful of macroeconomic uncertainties,” DyBuncio said. “Our diversified portfolio, prudent balance sheet and disciplined approach to capital allocation position us well to continue investing in the Philippines and creating long-term value for our customers, communities and shareholders.” PR
