SMIC income drops by half as crisis hits PHL economy

Conglomerate Sm Investments Corp. (SMIC) said its net income in 2020 was cut in half to P23.4 billion from the previous year’s P44.6 billion mainly due to the impact of the pandemic on its shopping malls and the pre-emptive bad loan provisions of its banks.

Consolidated revenues were down by 21 percent to P394.2 billion from P502.0 billion in 2019.

The banking business accounted for 55 percent of its net income, property at 33 percent and retail contributed 12 percent.

“Our businesses continued to build momentum through the end of 2020 as they addressed the changed behaviors and needs of our customers. Our banks, food retailing and residential property all performed well, while our malls and non-food retail operations showed steady improvements as conditions allowed. We continue to innovate and focus on safety and are cautiously optimistic about the year ahead,” SMIC President Frederic C. Dybuncio said.

SM Retail Inc., which consists of non-food businesses, such as the department and specialty stores and food stores, reported revenues at P296.8 billion, 19 percent lower than the P366.8 billion in the previous year. Net income was lower by 67 percent at P4.1 billion.

It opened two new department stores last year—one in Butuan and another one in Zamboanga. The total gross selling area of all 66 department stores in 2020 stood at 816,958 square meters.

The food group, which includes supermarket, hypermarket and Savemore, Alfamart and Waltermart, added 287 new stores in 2020.

SM Retail added a total of 351 new stores in 2020 across the portfolio.

At the end of 2020, SM Retail had a total of 3,019 outlets, comprising 66 department stores, 1,550 specialty retail stores, 59 supermarkets, 52 hypermarkets, 209 Savemore, 71 Waltermart and 1,012 Alfamart stores.

Shopping mall operator SM Prime Holdings Inc.’s income dropped by more than half to P18 billion from P38.1 billion in the previous year as rents in its properties fell due to the lockdown measures.

Consolidated revenues for the period fell 30 percent to P81.9 billion from the previous P118.3 billion.

Lender BDO Unibank Inc. posted a net income drop of 36 percent to P28.2 billion from the previous P44.2 billion due mainly to preemptive provisions of P30.2 billion set aside against potential loan delinquencies from the pandemic.

China Banking Corp. reported a net income of P12.1 billion, 20 percent higher compared with 2019 figures. Net interest income grew 30 percent to P33.8 billion on the back of a 39-percent drop in interest expense. Gross loans ended flat at P572 billion, while deposits were up 8 percent to P835 billion.