SECURITY Bank grew its net profit last year by 43 percent to P7.2 billion, making it one of the few banks that posted higher profits despite the industry-wide downturn in treasury earnings in the first half of the year.
This translated to a return on equity of 16.3 percent for the year, the bank said in a statement.
Deposits rose by 20 percent year-on-year to P247 billion as the bank launched a more aggressive retail banking program. Its loan book also expanded by 17 percent to P194 billion, translating to a loan-to- deposit ratio of 78 percent.
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 revenue—composed 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 hit 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,” said Security Bank president Alberto Villarosa said in a statement.
“We have evidently started to realize the benefits of our re-branding campaign as we gain recognition from our target market,” he added.
Total assets rose 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, its net non-performing loans was kept at 0.28 percent of total loans, which was among the lowest in the Philippine banking industry. For every peso worth of bad loans, P2 had been set aside as reserve cover.
“The bank’s capital remains strong with Basel 3 common equity tier 1 (CET 1) of 14.3 percent and total capital adequacy ratio (CAR) of 18.4 percent at the end of 2014, well above Bangko Sentral ng Pilipinas’ minimum requirements of 8.5 percent and 10 percent, respectively. The bank issued in July 2014 P10 billion in Basel 3-compliant tier 2 Notes,” Security Bank chief finance officer Joselito Mape said.