Philippines: SM’s $748-million profit surge reveals the bets shaping next growth wave

SM Investments Corp., a prominent Filipino conglomerate founded by Henry Sy, reported an 8% increase in consolidated net income to $748 million in the first half of 2026. The growth was driven by steady consumer demand, robust banking performance, and large-scale property and renewable-energy projects. Revenue rose 6% to $339.2 billion.

The company's banking business remained the largest contributor to earnings, accounting for 47% of net income. Property contributed 27%, retail 15%, and portfolio investments 11%. SM Retail saw a 5% increase in net income and a 12% rise in operating income, benefiting from strong demand for various products. The mall business also performed well, with revenues up 8% to $41.8 billion.

Despite challenges, SM's consumer spending remained healthy, according to Frederic DyBuncio, SM President and CEO. The company plans to exit the mining sector by transferring its mining assets, including its stake in Atlas Consolidated Mining, to another SM group company. This move would allow SMIC to focus on its core businesses of banking, property, and retail.

Renewable energy is emerging as a strategic bet for SMIC. Its geothermal arm, Philippine Geothermal Production Co. Inc., reported a 6% increase in first-half revenue to $2.5 billion and net income of $1 billion. SMIC is also working to develop additional geothermal concessions. The company views renewable energy as a potential "bright spot" as electricity demand rises and seeks stable, long-term growth sources.