Security Bank posts 8.2% hike in net income

MANILA, Philippines - Security Bank Corporation is reporting an 8.2 percent increase in net earnings in the first three months of 2012, from P930 million in the first quarter of 2011 to P1.1 billion this first quarter.

Thus, return on equity stayed at a healthy 14 percent.

Loan portfolio ballooned 20.2 percent to P98.6 billion, compared to the P92 billion end 2011.

In a statement, Security Bank president and chief executive officer Alberto S. Villarosa said that the generally positive tone has become evident in terms of domestic market confidence.

 “The expansion in our loan portfolio particularly in infrastructure, real estate, mining and energy has helped us achieve our targets for the first quarter of 2012, and remains to be the key factors in fueling what we optimistically anticipate to be a good year,” Villarosa added.

Strong net interest income results in the first quarter of 2012 were partly due to a stable four percent net interest margin (NIM) which was achieved despite pricing pressure in both corporate and commercial banking segments.

 “Other income, meanwhile, decreased by P199 million, brought about by the volatility of the foreign exchange, trading and securities portfolio,” the chief executive added.

The bank also reported a healthy increase in total operating income to P2.33 billion, an 11.7 percent growth from the same period last year.

Operating expenses, excluding provisions for credit and impairment losses rose to P1.2 billion at the end of March 2012 or an increase of 17.8 percent partly due to the consolidation of expenses of Premiere Development Bank (Premiere Bank), which Security Bank acquired in last February.

Non-performing loans (NPLs) ratio remained in the vicinity of 1.2 percent. NPL cover expanded to 264 percent.

 Capital adequacy ratio (CAR) stood at a strong 18 percent.