SMIC sees under-penetrated PH retail and banking sectors and approves a ₱20.7 billion cash dividend

Formalization push and 31% dividend hike signal growth outlook as SM Investments sets May payout schedule.

The Philippines remains a largely under-penetrated market, with major parts of key industries still operating outside formal systems, especially in retail, banking, and property, where informal setups continue to dominate in many areas across the country.

This was highlighted during the recent SM Investments Inc. (SMIC) annual stockholders’ meeting, where the group pointed to these conditions as leaving significant room for expansion as formal players step in to build infrastructure, improve access, and modernize how these sectors operate.

The conglomerate’s parent company noted that key sectors like retail, property, and banking remain largely informal in the country—especially in rural areas—which opens up opportunities for major players to provide proper infrastructure and widespread access.

The two-thirds opportunity

In retail, for instance, SMIC said modern groceries account for only about 30% to 40% of the food retail segment. The rest of the industry consists of formats like wet markets, roadside vendors, sari-sari stores, and independent groceries.

“Two-thirds of the [food retail] market is still available for formalization, which we know people want because people want proper hygienic standards, good service levels, air-conditioned stores, wider merchandising, and good pricing,” said Timothy Daniels, Head of Investor Relations and Sustainability.

The group also flagged banking as another industry in need of formalization, especially as 49.8% of Filipinos remain underbanked, according to a 2025 study by RCBC and Mastercard.

While digital banking has rapidly grown over the past decade, Daniels noted that the relationship tends to be transactional, and banking functions are not maximized, opening doors to explore financial services, particularly for indigent populations.

“People tend not to store value [in their accounts]; they don’t get deep relationships and all of the other banking services. So the real relationship and opportunity in banking in this country is only still beginning when you look at the consumer side,” Daniels said.

The ₱20.7 billion confidence vote

In a separate announcement during the same meeting, SMIC approved a total cash dividend payout of ₱20.7 billion, equivalent to ₱17.00 per share.

The company said the dividend declaration represents a 31% increase from 2025 levels. It set May 14, 2026 as the record date, meaning shareholders who purchase SMIC shares on or before this date will be eligible to receive the payout. The dividends will be paid on May 28, 2026.

According to SMIC, the way forward for the Philippine economy is by providing modern infrastructure and technological integration for these local industries to keep up with the global market.

 

 

SMIC is betting big on the unbanked and ungroceryed with a ₱20.7 billion cash dividend approved and a 31% payout hike.