SMIC confident amidst oil shocks

The SM Investments Corp. (SMIC) considers the West Asia war as a manageable disruption, betting that its diversified consumer-driven portfolio and disciplined capital management will shield it from global volatility.

Amando M. Tetangco Jr., SMIC chairman, said the company, one of the leaders in retail, banking, and real estate, is using pre-emptive liquidity and operational flexibility to weather global instability.

Tetangco, former governor of the Bangko Sentral ng Pilipinas, said the group is built to withstand cycles of stress rather than merely react to them.

“Our approach rests on three simple factors that have guided us through past disruptions,” Tetangco told shareholders during SMIC’s annual meeting, emphasizing that the company maintains a conservative balance sheet with manageable debt levels and sufficient liquidity.

This positioning allows the conglomerate to maintain a “buffer” to act even when credit conditions tighten globally.

The group’s resilience is anchored in its sprawling ecosystem, which includes BDO Unibank Inc., the country’s largest lender, and SM Prime Holdings Inc., one of the region’s biggest integrated property developers.

He said this diversification acts as a natural hedge, cushioning the group when specific sectors face headwinds.

Tetangco added that SMIC prioritizes securing domestic and international capital well ahead of any actual requirement, ensuring the firm is never forced to raise funds in the middle of a crisis.