Security Bank grew its net profit last year by 11 percent to P8.55 billion, the highest in the bank’s 65-year history, as strong core revenues made up for the slack in treasury gains.
For the fourth quarter alone, Security Bank’s net income increased by 18 percent to P1.9 billion, driven by a 30-percent increase in net interest income to P4.4 billion, the bank disclosed to the Philippine Stock Exchange on Wednesday.
“We are pleased with the quality of our earnings. Our 2016 results show steady progress in our core recurring income. The growth in our net interest income more than offset the lower trading gains,” Security Bank president and chief executive officer Alfonso L. Salcedo Jr. said in a press statement.
“Notably, the growth in our net interest income has accelerated to 30 percent year-on-year in fourth quarter 2016 from 28 percent in previous quarters. Our loans and deposits are growing robustly. Our asset quality and cost-to-income are in good shape. We continue to invest in growing the business,” he said.
For the full year, Security Bank’s net interest income increased by 28 percent to P15.9 billion, offsetting the P1.1-billion decline in trading gains,. Net interest margin was steady at 3.1 percent.
On the other hand, gains on sale of securities fell to P1.8 billion from P2.9 billion in the previous year.
Total loans and investments in corporate bonds increased by 25 percent to P317 billion. Corporate, commercial and retail customer loans rose by 20 percent to P289 billion.
Retail loans now account for 13 percent of the bank’s total loan portfolio, up from 10 percent in 2015. The bank is developing the retail business as a new growth segment.
Total consumer loans increased by 56 percent. Credit card receivables declined by 5 percent due to the sale of the Diners Club franchise to BDO Unibank.