Driven by its robust core lending activities, Security Bank Corp. booked a 4-percent profit growth in the first six months of the year to P4.9 billion.
For the second quarter alone, the bank’s net income grew by 42 percent year-on-year to P1.85 billion. This was on the back of a 34-percent year-on-year increase in net interest income to P3.9 billion, a 41-percent rise in service charges, fees and commissions and a three-fold increase in foreign exchange income.
“We are pleased with the quality of our earnings because it is coming from recurring income and core businesses. Growth has been balanced with both wholesale and retail banking registering encouraging results,” said Security Bank president and CEO Alfonso Salcedo Jr.
The bank saw its first semester net interest income rise by 28 percent to P7.4 billion. This offset a P1.4-billion drop in securities trading gains, which posted a high of P3 billion in the first half of 2015.
The increase in net interest income during the period was anchored on a 29-percent expansion in the bank’s loan book to P268 billion.
Corporate and commercial loans jumped by 27 percent while key consumer loan portfolios, composed of home and auto loans and credit card receivables, grew by 61 percent. Net interest margin improved to 3.2 percent in the second quarter from 3.1 percent the previous quarter.
Service charges, fees and commissions rose by 25 percent year-on-year to P1.1 billion, propelled by bancassurance, credit cards, loan fees and advisory. Meanwhile, foreign exchange income increased three-fold to P422 million.
Operating expense growth, excluding provisions for probable credit losses and impairments, was contained at 8 percent. The bank spent about 48 centavos for every P1 earned.
On the funding side, deposit base rose by 17 percent year-on-year in the first half to P301 billion. This was, in turn, driven by a 23-percent growth in low-cost deposits.