Security Bank 9-month profit up 12%
Lender Security Bank grew its net profit in the first nine months by 12 percent year-on-year to P7.4 billion on the back of a double-digit expansion in interest earnings.
For the third quarter alone, the bank’s net profit rose by 21 percent year-on-year to P2.14 billion, driven by a 22-percent increase in net interest earnings to P5 billion.
For the nine-month period, the bank’s net interest income rose by 24 percent year-on-year to P14.3 billion. Non-interest income, including trading gains, declined by 15 percent to P3.5 billion.
In a statement, Security Bank said the growth in its net interest income was on the back of a 38-percent year-on-year increase in loans to P370 billion and a 44-percent rise in deposits to P431 billion. Low-cost deposits grew by 22 percent.
On its earning assets, wholesale loans grew by 36 percent. Lending to top-tier corporations rose by 39 percent while lending to the middle market rose by 32 percent.
On the other hand, consumer loans rose by 67 percent. This segment accounted for 14 percent of total loans.
Net interest margin was stable at 3.2 percent in the third quarter. This slightly improved from 3.1 percent at the end of 2016.
Meanwhile, service charges, fees and commissions were up by 2 percent to P1.6 billion.
Operating expenses—excluding provisions for credit and impairment losses—were up by 17 percent due to a 22-percent increase in manpower cost.
Depreciation and amortization and software costs rose by 40 percent due to the major information technology upgrade and branch network expansion.
On asset quality, nonperforming loan ratio (NPL) stood at 0.11 percent. NPL reserve cover was 220 percent.
Total assets were up by 17 percent to P796 billion. Shareholders’ capital rose by 8 percent year-on-year to P103 billion.
Return on average shareholders’ equity (ROE) was 9.8 percent while return on average assets was 1.5 percent.
