Security Bank posts P2.4B net profit

MANILA, Philippines—Security Bank Corp. posted a 33 percent growth, or P2.4 billion, in net profit for the first six months of the year on the back of a double-digit rise in interest earnings, which had offset the slowdown in trading gains.

This resulted in an annualized return on equity of 19 percent as of end-June, the bank disclosed on Thursday.

Net interest income for the period amounted to P3.5 billion, marking a year-on-year growth of 17 percent.

Having fully deployed excess cash from securities sold at end-2010 alongside a buoyant growth in credits, the bank maintained a net interest margin of 4 percent.

On the other hand, non-interest income dipped by 8 percent to P1.24 billion versus the first six months of 2010, as the prevailing high interest rate environment contributed to the slack in trading gains.

But key components of other incomes continued to contribute, with foreign exchange gains increasing by 36 percent on the back of increased customer flows. Service charges, fees and commissions likewise increased by 23 percent, or P89 million, over the same period last year.