MANILA – Earnings of SM Investments Corp. (SMIC), the holding firm of mall magnate Henry Sy, grew 14.3% in the first 9 months of the year, fueled by the strong performance of its retail and property businesses.

In a statement, SMIC said its net income rose to P10.8 billion in January to September 2009 from P9.4 billion in the same months last year, as revenues rose 14% to P110.9 billion from P97.3 billion.

‘SM’s 9-month results in 2009 affirm our growth track over the medium term, as it is achieved amidst a challenging global business climate. SM is poised to enter a new growth cycle led by our retail and property businesses. SM’s core businesses, namely malls, retail, banking, and property, mirror the strengths of the Philippine economy amidst the global financial crisis,’ SM President Harley Sy told the Philippine Stock Exchange on Monday.

SMIC’s retail division accounted for 34% of the holding firm’s profits. The mall and banking groups, on the other hand, contributed 27% each. The remaining 12% came from SMIC’s real estate group.

SM retail stores reported a net income of P3.1 billion as of end-September, up 37% from the P2.2 billion recorded in the same period last year. To date, SM has a nationwide network of 35 department stores, 26 supermarkets, 20 SaveMore branches, 18 hypermarkets, and 12 Makro outlets.

‘The robust performance of SM retail is due largely to cost and operational efficiency improvements, and its continued expansion, particularly of smaller supermarket format SaveMore, which opened 8 stores since January this year,’ SMIC said.

SM Prime Holdings Inc., the country’s largest mall developer and operator, posted an 8% growth in profits to P5.1 billion on the back of high rental fees from new and existing malls. SM Prime is set to open SM City Rosario in Cavite by yearend, bringing the total number of its shopping centers to 36.

SMIC’s banking units also reported year-on-year income growths during the first 9 months. Banco de Oro Unibank Inc. recorded a 159% rise in profits to P4 billion, while China Banking Corp. posted a 40.7% increase to P3.2 billion.

Earnings from real estate operations, meanwhile, rose 42% to P1.7 billion, owing mainly to residential sales of listed unit SM Development Corp. Further contributions came from leasing activities of the commercial properties group, and the resort projects of Costa del Hamilo, SM’s tourism vehicle, which is developing the Pico de Loro Cove project in Nasugbu, Batangas.

Earlier, SMIC said it is likely to exceed its 12% profit growth target this year, with the sustained performance of its units, particularly the property group, which is expected to increase its contribution further due to high double-digit growth in condominium sales.