SM Investments' Profit Rose on Higher Discretionary Spending, Bank Earnings

By Rthvika Suvarna

SM Investments Corp. reported a rise in quarterly profit, thanks in part to higher discretionary spending and an uptick in banking activity.

The Philippine investment holding company said Wednesday that second-quarter net profit rose 13% from a year earlier to 21.8 billion Philippine pesos ($377.0 million). Banking contributed about 50% of the bottom line, while property and retail contributed 27% and 14%, respectively, SM Investments said.

Quarterly revenue rose about 6% to PHP157.7 billion. SM Investments said retail spending in the health and beauty segment rose 16% while fashion sales rose 10.5%.

"We remain cautiously optimistic for the balance of the year," said Chief Executive Frederic C. DyBuncio.

SM Investments has interests in the Philippines' largest bank--BDO Unibank--as well as China Banking Corp., property arm SM Prime Holdings and retail operations that include grocery stores and specialty stores, among others.

Write to Rthvika Suvarna at rthvika.suvarna@wsj.com

(END) Dow Jones Newswires

August 07, 2024 05:28 ET (09:28 GMT)

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