Tuesday, September 29, 2020

SM Nets PHP7 Billion Earnings In First Half Due To COVID-19 Impact

SM Nets PHP7 Billion Earnings In First Half Due To COVID-19 Impact

Spotlight

EDSA Busway System To Implement Fully Cashless Transactions With Beep Cards

Cashless transactions via Beep card will begin on October 1.

SM Wins At 2019 Asia Sustainability Reporting Awards

The SM Investments Corporation has bagged yet again another award!

7 Commandments To Revitalize The Country Safely

Medical experts recommend strict health protocols for public transportation.

Alibaba Cloud Launches New Digital Ecosystem Strategy In The Philippines

This will help local businesses adapt further to the new normal!

SM Investments Corporation (SMIC) reported a consolidated net income of PHP7.1 billion in January to June of 2020 from PHP23.0 billion in the same period the previous year, lower by 69%.

Consolidated revenues decreased 21% to PHP185.5 billion in the first half from PHP233.7 billion in the same period last year.

The property and banking businesses accounted for 61% and 34% of net income while retail contributed 5%.

“Our half year financial results are within our overall expectations, given the context of the lockdown due to the COVID-19 outbreak which had a greater impact in the second quarter. The results also reflect the group’s continued financial prudence and conservative balance sheet after our banks made substantial provisions for potential customer delinquencies,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

“Our food retail and residential property businesses have continued to perform well despite the pandemic as have the core businesses of our banks. The current environment has been most challenging for our non-food retail and mall operations which have adapted quickly to new customer needs and critical safety considerations. All our businesses will continue to prioritize health and safety as well as convenience for our customers and stakeholders,” Mr. DyBuncio said.

Retail

SM Retail reported revenues of PHP139.2 billion, lower by 18%. Retail net income was at PHP522 million from PHP5.7 billion the previous period.

Notable is the growth in food retail, particularly in store locations that are closer to residential communities and provide a sustained supply of essentials. In the first half, food retail revenues grew 15% with Alfamart posting an increase of 32% in revenues in the same period.

Property

SM Prime Holdings, Inc. posted a consolidated net income of PHP10.4 billion, down by 46% from PHP19.3 billion in the same period last year. Consolidated revenues amounted to PHP43.7 billion, 23% lower from PHP57.0 billion.

Philippine malls’ rent income dropped 44% to PHP13.1 billion from last year’s PHP23.3 billion on the back of lower mall revenues.

SM Prime’s residential business, led by SM Development Corp. (SMDC), recorded PHP23.7 billion in revenues, 11% higher from PHP21.4 billion in the same period last year. This accounted for 54% of the consolidated revenues.

SM Prime’s commercial properties revenues have grown 16% to PHP2.5 billion in the first half of 2020. The hotels and convention centers business contributed PHP1 billion to consolidated revenues despite limited operations.
Banking

BDO Unibank, Inc. (BDO) recorded PHP4.3 billion in profits in the first half versus PHP20.1 billion in the comparable period last year as the bank booked total provisions of PHP22.4 billion in anticipation of potential delinquencies due to the COVID-19 pandemic.

Net interest income went up by 17%. Customer loans rose 11% to PHP2.3 trillion while total deposits went up by 9% to PHP2.6 trillion.

China Banking Corporation (China Bank) posted PHP5.2 billion in net income in the first half of 2020, up 24% year-on-year. The growth was achieved even as the bank ramped up provisions more than fourteen times to PHP4.8 billion in anticipation of the impact of COVID-19 and ongoing quarantine measures on asset quality.

Net interest income grew 39% to PHP16.2 billion on the back of higher volume of earning assets and lower funding costs as market interest rates declined. Loan portfolio expanded 11% to PHP593 billion. Total deposits grew 3% to PHP773 billion.

Balance Sheet

As of end-June 2020, total assets of SMIC grew to PHP1.2 trillion. Net debt to equity ratio stood at 39% net debt to 61% total equity.

SMIC recently submitted a registration statement for PHP30 billion in bonds under a shelf registration of three years.

SMIC also enrolled PHP5.6 billion worth of fixed rate notes due 2022 with the Philippine Dealing and Exchange Corporation intended for Qualified Institutional Buyers. This is SM’s maiden enrollment of such notes on the PDEx.

Latest News

Comelec Says Low Voter Registration Turnout ‘Expected’

Have you registered to vote yet?

Pres. Duterte Extends Term Of Task Force Overseeing Yolanda Rehab

Duterte extends the term of the inter-agency task force in charge of monitoring rehabilitation and recovery projects and programs in areas affected by Super Typhoon Yolanda until the end of his presidency.

Kapampangans Mark Diosdado Macapagal’s 110th Birth Anniversary

Kapampangans commemorat the 110th birth anniversary of the late President Diosdado P. Macapagal.

Palace Stands By Order Requiring Face Shields In Workplaces

Employees, to continue wearing face shields in workplaces.

Alibaba Cloud Digitalizes Sports Events With More AI Solutions

Cloud technologies revolutionize sports entertainment bringing new experiences to fans, organizers and broadcasters.

Livelihood Kits Up For 525 Biliran Small Businesses

At least 525 micro, small and medium enterprises in Biliran province will receive PHP5,000 worth of livelihood seeding kit from the DTI.

DepEd: 88.8% Of Target Learners Have Enrolled

A total of 24,661,768 learners have enrolled nationwide out of the targeted 27,770,263 learners who enrolled in the previous academic year.

Hospitals ‘Strictly Prohibited’ From Charging For Donated PPE Use

According to Vergeire, aside from the donated PPE, pieces of hospital-acquired PPE may be charged to patients during the COVID-19 health emergency response period as per Department Memorandum 2020-0269.

Usec. Vergeire: COVID-19 Cases Drop Due To ‘One Hospital, Oplan Kalinga’

"It (One Hospital Command) has given a breather to our healthcare system... We saw the healthcare utilization rate has gone down to level that's still in the warning level but the healthcare system was able to manage and we're able to open units in hospitals to accommodate patients."

LTFRB: Travel Pass, Early Booking Required To Board Prov’l Buses

LTFRB reminds travelers to secure a travel pass and book in advance before entering or leaving the National Capital Region.