Loans boost Security Bank’s Q1 income

Security Bank Corp. saw its net income rise by 17 percent to P1.43 billion, from P1.2 billion in the first three months of 2013.

In a statement on Tuesday, Security Bank said its net profit growth rate in the first quarter of 2014 was also higher than the 11-percent jump in the same three-month period in 2013.

Security Bank attributed the faster net income growth to the 42-percent increase in its net interest income from January to March. The bank added that the return on shareholders equity stood at 13.8 percent during the first quarter.

“The core businesses (loans and deposits) really grew in the first quarter. It was a good first quarter,” Security Bank president and chief executive Alberto S. Villarosa said.

“Our corporate banking had good loan growth, as well as deposit growth. Our commercial banking also produced significant growth, partly as a result of the efforts in the last quarter of last year, which were carried over to the first quarter,” he added.

Villarosa declined to provide a net income growth guidance for 2014, only saying that this year’s loan growth should be 15 to 20 percent. Last year, Security Bank’s net income amounted P5 billion, about a third lower than the record P7.5 billion in 2012.

At end-March, the bank’s total assets expanded 46 percent to P377 billion, up from P258.9 billion last year. The loan book during the first quarter grew 39 percent to P166 billion from P119.2 billion.

First quarter deposits posted a 49-percent increase to P211 billion from P141.8 billion in 2013. Capital at end-March, meanwhile, reached P42 billion, up 11 percent year-on-year.

The next few quarters look rosy for the banking sector, Villarosa said. “The economy is performing very well. Our credit processes are still tight, but we are looking forward to very healthy second and third quarters.”