Security Bank nets P7.2B in 2014

SECURITY Bank grew its net profit last year by 43 percent to P7.2 billion, one of the few banks to post higher earnings for 2014 despite the industry-wide downturn in treasury earnings in the first half of the year.
This full-year performance translated to a return on equity of 16.3 percent for the year, the bank said in a press statement on Monday.
Deposits rose by 20 percent year-on-year to P247 billion as the bank launched a more aggressive retail banking program. The loan book likewise expanded by 17 percent to P194 billion.
Despite declining margins, the bank grew its net interest earnings by 33 percent to P11.2 billion while keeping net interest margin at 3.4 percent.
Core revenues – comprised of net interest income, fee-based income, and trading gains attributable to customer flows – grew by 26 percent to P13.6 billion. Fee-based income was P1.7 billion, 8 percent higher versus previous year. Overall trading gains were at P3.6 billion.
“We are extremely delighted with the bank’s 2014 business results. All in, the bank turned in a solid and well-orchestrated, balanced performance: earnings results and return on shareholders’ equity remain among the industry’s highest; our balance sheet is even healthier, attributable mainly to asset quality and proven capital strength; and, most importantly, our core businesses have outperformed themselves in demonstrating growth in their respective franchises. Wholesale Bank continues to grow robustly in terms of deposits, loans, and earnings while our retail bank is well on track in its strategic direction towards becoming a significant contributor to the bank’s businesses,” Security Bank president Alberto Villarosa said in a press statement.
Total assets increased by 14 percent to P397 billion by the end of 2014.  Shareholders’ capital expanded by 15 percent to P47 billion.
In terms of asset quality, net non-performing loans was kept at a ratio to total loans of 0.28 percent — among the lowest in the Philippine banking industry.