HENRY SY doesn’t wait for an opportunity, he finds it. Proof is how the tycoon behind the retail string SM malls defied the traditional property mantra of location, location, location’ and built where no one else thought of building.

From the modest shoe store he opened in downtown Manila, Mr. Sy brought the shopping action to the sleepy outskirts and in the process, spurred other developments that helped make these the big cities that they are now.

Two decades ago, the retail mogul decided that he could do more than just put up another department store. Today, he and his equally enterprising brood own SM Investments Corp. (SMIC), a thriving conglomerate that counts merchandising, shopping malls, banking, and real estate as its core businesses.

RETAIL MERCHANDISING
SMIC posted a profit growth of P3.9 billion in the third quarter, bringing its January-to-September net income to P12.5 billion, a 16% jump from the same period in 2009. Retail merchandising and shopping malls are still among the top drivers of the SM group, contributing 31% and 24.3%, respectively, to its total earnings.

SM Retail, composed of departments stores, supermarkets, hypermarkets, SaveMore branches and Makro outlets, raked in P3.6 billion in profits, a 16% year-on-year climb, while SM Prime – which builds big boxes that position themselves as one-stop shops selling a wide variety of products at competitive prices – posted a net income of P5.6 billion, up by 11%, during the same period. The latter’s strong performance is attributed to new malls opened in Tarlac; San Pablo and Calamba, Laguna; and Novaliches, Quezon City.

‘Historically, the third quarter has always been seasonally low particularly for the retail and mall businesses;’ noted SM Investments President Harley Sy in a statement.”This year is exceptionally strong, largely due to a more buoyant economy and stronger consumer spending.’

BANKING AND PROPERTY
Banco de Oro (BDO), SMIC’s second biggest income generator last year, became its top contributor in 2010, accounting for 31.5% of total earnings from January to September.

The country’s largest bank in terms of capitalization registered a net income of P6.4 billion in the first nine months of the year, 58% higher than in 2009. SMIC said BDO ‘posted sharp gains following its recovery from the shocks of the global crisis.’ China Bank, for its part, had a consolidated net income of P3.8 billion, up by 17%, amid a 7.6% hike in net interest revenues.

Real estate arm SM Development contributed 13.2% to the group’s total earnings, with a consolidated net income up by 110% to P7 billion, on the back of a 39% growth in revenues. SM Development, which builds residential, commercial and leisure properties, was its strongest in the residential segment, with at least 13 projects in the market as of end-September.

Beyond its businesses, SMIC extends a helping arm through SM Foundation, Inc., tasked with handling the conglomerate’s corporate social responsibility efforts, which include scholarship programs, construction of school buildings, medical missions, a mall based outreach program and housing and community projects.