The 2004 income was restated due to the adoption of the new International Accounting Standards which became effective in 2005.

Consolidated revenues for 2005 amounted to P54 billion, up 7.5 percent compared to P50.2 billion in the previous year. The firm said retail sales remained to be the main growth driver, comprising 72 percent of the company’s total revenues.

The retail group contributed P39.1 billion of revenues or an 8 percent growth over previous year, due to the opening of new SM Department Stores in Dasmariñas, Batangas, San Lazaro in Manila, and Sucat Annex.

Rental revenues also grew, by 9 percent to P8.3 billion in 2005 from P7.6 billion in the previous year, due to the opening of new SM Supermalls in Dasmariñas, Batangas, San Lazaro, Molino and Valenzuela.

Banco De Oro Universal Bank’s net profit increased by 26 percent to P2.5 billion and China Banking Corporation’s net profit registered a growth of 12 percent to P3 billion.

Interest Income grew by 23 percent to P2.6 billion from P2.1 billion in previous year while interest expense decreased by 22 percent to P2.5 billion this year as a result of the prepayments of certain bank debts from the proceeds of the Initial Public Offering in March 2005.

SMIC subsidiaries are on track on their expansion programs. SM Prime continues to expand its network of malls. It opened its 23rd mall, the SM City Sta. Rosa on February 17, 2006, the first of six malls the company will open this year.

Other malls scheduled to open this year are the Mall of Asia, SM City Clark, SM City Lipa, SM Supercenter Frontera Verde, and SM City North Edsa Annex — 3. Total gross floor area will increase to 3.5 million square meters by end-2006 from 2.8 million square meters as of December 31, 2005.

SM Department Store is also on track on its projects. There are 26 Department Stores and 3 new stores are scheduled to open in 2006.

Banco De Oro is presently converting into BDO branches the 66 branches of United Overseas Bank (UOB) Philippines which it acquired last year. This will bring the total number of BDO Branches to 251.

China Bank, meanwhile, continues to offer innovative ways to improve services to clients. Its internet and mobile banking platform, China Bank Online, allows customers to do their bank transactions anytime, anywhere.

Property units, SM Development Corporation (SMDC) and Highlands Prime, Inc. (HPI), continue to develop substantial tracts of real estate holdings into residences and tourist destinations.

SMDC has recently launched its Mezza Residences, across SM City Sta. Mesa mall. Last February, Highlands Prime broke ground for its new project in Tagaytay Highlands, The Woodridge Park.

SMIC is also ready to take advantage of opportunities in the property sector by starting this month the construction of the OneEcomCenter. Construction will also soon begin on the country’s first privately-run exhibition and conference center, MAITRADE Expo and Convention Center.

The firm said the group is prepared for the increasing challenges ahead and is well positioned to seize the opportunities brought about by the improving over-all economic outlook.