SM maintains confidence in the country's growth trajectory

PASAY CITY,Philippines,March 20, 2025/PRNewswire/ -- SM Investments Corporation (SM Investments), the parent company of the SM group, is optimistic aboutthe Philippines'growth momentum, reaffirming its commitment to the economy's future, according toErwin G. Pato, Executive Vice President for Treasury, Finance, and Planning.

In recent interviews on CNBC and Bloomberg, Mr. Pato highlighted SM Investments'confidence in the country's growth trajectory. He emphasized that the group's synergized investments in retail, property, and financial services will continue to contribute to the consumption-driven growth ofthe Philippines.

The group also recently announced aPHP60-billionshare buyback program, which is touted as the largest in Philippine corporate history. This initiative reflects SM's positive outlook on the country's economic future. SM's decision to repurchase shares worthUSD1 billionsignals the company's belief in its value appreciation and the continued growth of the Philippine economy.

"We're having this buyback because we believe in our company and its growth potential,"said Mr. Pato.

"We believe that growth inthe Philippineswill continue to be consumption-driven,"he added."Seventy percent of our gross domestic product (GDP) is consumption-driven, and our business is right within that footprint. Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth."

SM Investments'consolidated net income showed a 7% increase in 2024, rising toPHP82.6 billionfromPHP77.0 billionin 2023. Meanwhile, SM Retail Inc., the group's retail arm, posted a net income ofPHP20.9 billion, up fromPHP19.9 billionin the previous year.

"We're a proxy of the Philippine economy because of our scale and the communities we serve,"Mr. Pato explained."With lowering interest rates, we believe this will help our macroeconomics and could lead our economic managers to achieve our inflation rate within the 2% to 4% range. If that happens, it suggests a strong tailwind for the consumer story."

As one of the country's leading property developers, SM Prime Holdings, Inc., the group's property arm, is earmarkingPHP100 billionthis year for the development of its malls, residences, offices, hotels and convention centers. This investment is driven by expectations of sustained growth in consumer demand and corporate activity.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM's retail operations are the country's largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM's property arm, SM Prime Holdings, Inc., is the largest integrated property developer inthe Philippineswith interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM's interests in banking are in BDO Unibank, Inc., the country's largest bank, and China Banking Corporation, the fourth largest private domestic bank.

For more information, please visitwww.sminvestments.com

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/sm-maintains-confidence-in-the-countrys-growth-trajectory-302406765.html

SOURCE SM Investments Corporation