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Two decades after listing on the Philippine Stock Exchange (PSE), SM Investments Corporation (SM Investments) is increasing its focus on its core retail, banking, and property sectors while aiming for regional market expansion and inclusive growth.
SM recently opened SM J Mall in Cebu as it continues to reach more provinces to provide access to modern retail experiences. SM Investments President and Chief Executive Officer (CEO) Frederic C. DyBuncio outlined a dual strategy for the Sy family’s holding company: continued growth in core businesses and expansion in new investment areas. "For the next 20 years, we will continue to grow our core businesses, specifically retail, banking, and property," DyBuncio stated. "We will also continue to grow our portfolio companies," emphasizing the potential in renewable energy, logistics and tourism.
SM Investments also intends to align its objectives with government priorities for national development. "We will align our objectives with the Philippine government's priorities and support their initiatives," DyBuncio said.
This strategy, along with sustainability goals, positions SM Investments as a major economic driver. The group's scale makes it a key indicator of the Philippine economy.
Since its March 22, 2005 listing, the SM group has expanded. Malls increased from 19 to 87, retail stores to 4,470, and bank branches to 2,441, with assets exceeding ₱1.7 trillion.
SM Investments, SM Prime Holdings, BDO Unibank, and China Banking Corp. now represent around 30 percent of the PSE index market capitalization.
Rapid expansion continues
In 2024, SM Investments reported a consolidated net income of ₱82.6 billion on revenues of ₱654.8 billion. Banking contributed 49 percent of net income, property 26 percent, retail 18 percent, and portfolio investments seven percent. Last year alone, SM added 619 retail stores, two malls, and 73 bank branches, mainly in provincial areas.
SM's core strength is its customer focus, evident in its retail operations. The company offers a wide product range and service standards. With 85 percent of new footprint outside Metro Manila, SM is expanding into provincial markets.
On the other hand, BDO Unibank, SM's banking arm, promotes financial inclusion and supports micro, small, and medium enterprises (MSMEs). BDO also funds renewable energy and infrastructure projects. As a major renewable energy funder, BDO has extended ₱898 billion in sustainable finance, including loans to 59 renewable energy projects as of December 2023.
Meanwhile, SM Prime, one of Asia’s leading real estate firms, develops mixed-use properties, promotes financial inclusion, builds housing, and provides community amenities. SM's synergy across its businesses and portfolio investments creates a robust business ecosystem.
SM's SM Green Finds Program, likewise, promotes sustainable consumer choices.
The SM Green Finds Program promotes sustainable consumer choices.The group supports MSMEs and sustainable suppliers. To date, SM has supported over 100,000 MSMEs, fostering entrepreneurship and regional development.
Looking at future growth
The SM Group is positioning itself for future growth with continued investments in its core businesses and emerging sectors, including renewable energy, logistics, manufacturing, and tourism. These portfolio investments contributed 7 percent to its 2024 net income and are expected to grow further.
In renewable energy, SM Investments operates the Philippine Geothermal Production Company. SM Prime has partnered with GUUN Co. Ltd. on a waste-to-fuel project. SM Investments is also involved in logistics through 2GO Group and tourism through SM Hotels and Conventions Corp. (SMHCC) and Belle Corporation.
SM’s strategy focuses on expanding access to modern retail, banking, and property development, particularly in underserved regions, to drive inclusive growth for the Philippine economy. SM’s core businesses along with portfolio investments help create lasting social and economic value, fostering growth and opportunities across regions.
SM continues to provide a well-balanced assortment that serves every shopper. Investing in communities
Beyond business operations, SM remains committed to responsible and inclusive growth through its corporate social responsibility (CSR) arm, SM Foundation, with a focus on long-term community development.
SM Foundation invests in education, healthcare, livelihood, and shelter to uplift communities, aligning with its primary goal to foster sustainable development and empower communities for the long term. In 2024, the Foundation continued its efforts by inaugurating a school building in La Union, bringing the total to 110 school buildings and over 370 classrooms built nationwide.
In addition to its community development initiatives, the Foundation plays a crucial role in disaster response, distributing over 108,000 Kalinga Packs through Operation Tulong Express (OPTE) in 2024. By leveraging resources from SM Markets, SM Supermalls, Airspeed, and 2GO, the Foundation ensures essential support reaches those in need while laying the groundwork for future community growth.
