Security Bank posts P1.72-B 9-mo. profit
By Doris Dumlao
Philippine Daily Inquirer
First Posted 19:32:00 11/16/2008
Filed Under: Banking, Earnings
SECURITY BANK CHALKED UP a net income of P1.72 billion in the first nine months, 6 percent lower than a year ago, amid a turbulent global environment.
The decline in profit growth, however, was more modest compared with the double-digit contraction in earnings suffered by most of its banking peers during the same period. As such, Security Bank maintained a high return on equity of 19.3 percent.
"This has certainly been a very challenging period for businesses across the board. We are nevertheless pleased that the efforts we exerted in building core revenues and other income streams have helped in softening the adverse impact on securities markets brought about by the global financial turmoil that began in the US and Europe," Security Bank president and CEO Alberto Villarosa said in a press statement.
Security Bank's balance sheet at end-September 2008 stood at P144.1 billion, 12-percent higher than the P128.6 billion recorded in end-December 2007.
"Our balance sheet growth was largely driven by a noteworthy 18-percent growth in our loan portfolio to close the period at P61.6 billion despite the current economic environment," bank chief finance officer Carlos Borromeo said.
The bank expanded its balance sheet by increasing its lending portfolio, which now accounts for 43 percent of its total assets.
Lending activity, however, was boosted without compromising asset quality. Non-performing loans (NPL) as a ratio of total loan portfolio eased further to 1.3 percent from 2.6 percent in end-2007. This was lower than the average industry ratio of 3.88 percent as of end-August.
NPL cover likewise grew to 266 percent from the 181 percent reflected at the end of last year. This meant that for every P1 worth of bad loans, the bank had set aside P2.66 as loss buffer.
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