Security Bank 6-month net down 18% as trading gains decline

Key lender Security Bank saw an 18-percent year-on-year drop in net profit in the first six months to P4.3 billion as trading gains dwindled while tax provisioning increased.

Net interest income from customer loans and deposits rose by 34 percent year-on-year to P7.4 billion in the first six months, Security Bank told the Philippine Stock Exchange yesterday.

The bank expanded its loan book by 12 percent year-on-year to P383 billion. Consumer loans grew by 50 percent, accounting for 18 percent of total loan portfolio, while wholesale lending rose by 7 percent from a year ago.

Net interest margin between loans and deposits was 4.27 percent in the second quarter, up by 7 basis points from the previous quarter and by 39 basis points from a year ago.

Service charges, fees and commissions rose by 16 percent year-on-year to P1.3 billion in the first six months. The growth in fee income was broad-based, led by bancassurance, credit card and loan fees.

Trading gains fell by 59 percent year-on-year while on the expenditure side, provision for income taxes rose by 55 percent.

Interest income from financial investments also fell by 13 percent year-on-year to P4.8 billion in the first six months as securities portfolio dropped by 13 percent year-on-year.

As such, net interest income grew by 8 percent year-on-year to P10 billion in the first six months.

On the funding side, deposits grew by 17 percent to P443 billion in the first six months, buoyed by low-cost deposits which increased by 15 percent.

For every P1 in deposit generated by the bank, it lent out 86 centavos compared to 90 centavos a year ago. —DORIS DUMLAO-ABADILLA