Security Bank income jumps 12% to P8.5 billion

MANILA, Philippines — Security Bank Corp. booked a 12-percent jump in net income to P8.55 billion in the first nine months versus last year’s P4.83 billion amid higher revenues.

For the third quarter alone, net earnings rose by 14 percent to P3 billion from a year ago. On a quarterly basis, the bank’s profit inched up by seven percent.

“We are pleased with our third quarter results. The combination of our client engagement, significant investments in our team and our technology has accelerated the bank’s growth. We are excited about delivering on our Better Banking promise,” Security Bank president Sanjiv Vohra said.

Total revenues of the listed bank surged by 28 percent to P40 billion year-on-year as net interest income grew by 31 percent to P32.4 billion with a net interest margin of 4.90 percent.

Total non-interest income increased by 18 percent to P7.6 billion as service charges, fees and commissions soared by 55 percent to P6.7 billion.

Operating expenses went up by 24 percent, driven by investments in manpower and technology. This translated to a cost-to-income ratio of 58.8 percent compared to 60.7 percent a year ago.

Pre-provision operating profit grew by 34 percent to P16.5 billion, as provisions for credit losses soared by 96.2 percent to P5.1 billion from P2.6 billion.

The bank’s gross non-performing loan ratio stood at 3.08 percent, while NPL reserve cover increased to 79.5 percent.

For the nine-month period, Security Bank’s loans increased by 24 percent to P623 billion, while its deposit base also grew by 28 percent to P720 billion.

Retail and micro, small and medium enterprise loans grew by 38 percent year-on-year, driven by home loans which grew 21 percent, credit cards which rose 70 percent, auto loans which grew 51 percent and MSME loans which increased 58 percent.

The 73-year-old bank has 334 branches and 678 ATMs nationwide.