Security Bank nets P3.61 B in first half of 2014

Security Bank Corp. FILE PHOTO

MANILA, Philippines—Security Bank Corp. grew its first semester net profit by 115 percent year-on-year to P3.61 billion, defying the industry-wide downturn in treasury earnings.

This six-month profits translated to a 17.2 percent return on equity and 1.9 percent return on assets, according to the bank’s disclosure to the Philippine Stock Exchange on Tuesday.

“This result was driven by sustained growth in the bank’s core businesses, with loan portfolio increasing by 30 percent year-on-year to P173 billion, investment securities expanding by 106 percent to P111 billion, and deposits growing by 22 percent to P218 billion, which fueled a 31 percent year-on-year increase in Security Bank’s total assets to P385 billion,” the bank said.

For every peso of deposit generated, the bank lent out P0.79, thereby expanding its earning assets. Net interest income increased by 46 percent year-on-year to P5.8 billion in the six-month period while net interest margin was sustained at 3.5 percent, the same level as in 2013.

Core revenues, which consist of net interest income, fee-based income, and trading gains attributable to customer flows, increased by 31 percent year-on- year to P7 billion in the first half.

Fee-based income inclusive of asset management was P850 million, rising from P745 million in the same period last year.

On the other hand, overall trading gains contributed P1.66 billion in the first semester, much higher than the P279.4 million gains booked in the same period last year.