Security Bank books P8.6B in net profit for 2018

MANILA, Philippines–Lender Security Bank booked P8.6 billion in net profit last year, down by 16 percent from the previous year, due to slower trading gains and an increase in tax provision.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Security Bank reported that net interest income from customer loans and deposits increased by 30 percent to P15.7 billion last year as the bank generated more low-cost deposits and expanded its loan book.

The bank expanded its loan book by 12 percent to P416 billion. Consumer loans grew by 47 percent, now accounting for about a fifth of total loans compared to 16 percent a year ago. Wholesale loans rose by 7 percent.

Total deposits increased by 18 percent to P489 billion. Low-cost deposits grew by 15 percent.

Net interest margin improved to 3.4 in the fourth quarter, up by 13 basis points year-on-year and up by 10 basis points quarter-on-quarter.

Service charges, fees and commissions increased by 26 percent to P2.9 billion, driven by credit card, bancassurance, loan fees and deposit charges.

On the other hand, trading gains dwindled by 85 percent or P2 billion year-on-year while the provision for income tax rose by 47 percent or P790 million, primarily accounted for the 16-percent drop in net income last year.

Operating expenses grew by 10 percent, excluding provisions for credit and impairment losses.

Security Bank had a total of 305 branches and 760 automated teller machines as of end-2018. /jpv