SM Investments Corporation (SM) reported consolidated net income of PHP45.9 billion for the first half of 2026, up 8% from PHP42.6 billion in the same period last year. Consolidated revenues increased 6% to PHP339.2 billion, from PHP319.2 billion previously, as sustained consumer demand and the strength of its diversified business model supported growth across the Group.

"Consumer spending in our retail stores and malls remained healthy despite recent economic shocks," said Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments. "The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient."

Segment Performance

Banking remained the Group’s largest earnings contributor, accounting for 47% of net income, followed by property at 27%, retail at 15%, and portfolio investments at 11%. Banks posted mid-teens loan growth, reflecting the continued strength of its core banking franchise.

SM Retail reported net income up 5% to PHP8.9 billion, while operating income grew 12% to PHP14.0 billion. This divergence between net income and operating income growth demonstrates the company’s ability to efficiently manage expenses amid a higher inflation environment. Growth was broad-based, driven by resilient demand for everyday essentials and the expansion of the store network.

Food retail posted steady sales growth across supermarket and minimart formats. Specialty retail registered higher sales, led by the Home, Other Fashion, and Kids categories. Growth in the Home category was due to sustained demand for power source alternatives, while Other Fashion was led by Kultura and Crocs.

Property and Portfolio Investments

Revenues in the mall business grew 8% to PHP41.8 billion, on the combined effect of higher occupancy, stronger tenant sales, and improved operational efficiency. As the Group’s largest consumer-facing business, the unlisted SM Retail business contributes significantly to recurring cash flows at the parent level.

Portfolio investments delivered a stronger performance, driven by a turnaround in Atlas Consolidated Mining and Development Corporation, buoyed by higher copper prices. 2GO Group, Inc. recorded revenue growth across all categories, supported by higher passenger volumes in travel and logistics volumes from online purchases. Philippine Geothermal Production Company, Inc. revenues increased amid adjustments in energy prices.

What the Numbers Show

The data reveals a distinct operational efficiency gain within the retail segment. While SM Retail’s net income grew by 5%, its operating income expanded by 12%. This significant gap suggests that the company successfully controlled operating expenses relative to revenue generation, allowing a larger portion of top-line growth to flow through to the bottom line despite the cited higher inflation environment.

Balance Sheet and Outlook

Total assets stood at PHP1.82 trillion, with a conservative capital structure of 31% net debt to 69% equity. The Group’s scale and recurring income enable it to generate cash reliably across economic cycles, allowing resource allocation toward expansion and long-term value creation.

"We remain positive about the outlook for the second half of the year, while staying mindful of macroeconomic uncertainties," Mr. DyBuncio said. "Our diversified portfolio, prudent balance sheet and disciplined approach to capital allocation position us well to continue investing in the Philippines."

SM Investments Corporation, along with its banking subsidiaries BDO Unibank and China Banking Corporation, has been included in the Fortune Southeast Asia 500 list for the third consecutive year. The ranking highlights the scale and resilience of the SM Group within the Philippines and the broader Southeast Asian region. SM Investments ranked second among the 42 Philippine companies included, securing the 28th position regionally. BDO Unibank placed fifth domestically and 52nd in the regional rankings, while China Bank ranked 161st on the regional list.

The Fortune Southeast Asia 500 is an annual ranking of the region's largest companies based on revenue from the previous fiscal year. The list provides data on revenues, profits, assets, and workforce for each entity. SM Investments has been featured in the ranking since its launch in 2024.

Company Rankings

SM Investments President and Chief Executive Officer Frederic C. DyBuncio attributed the recognition to the dedication of the company's people and the trust of its customers. He noted that the inclusion underscores the role businesses play in advancing inclusive growth and strengthening Southeast Asia's economic development and trade landscape.

The SM Group operates through investments in retail, banking, and property. Its retail operations are the largest and most diversified in the country, while SM Prime Holdings is the largest integrated property developer in the Philippines. The group's banking interests include BDO Unibank, the country's largest bank, and China Banking Corporation, one of the largest private domestic banks.