Photo from Security Bank
MANILA, Philippines — Key local lender Security Bank posted a 1.5-percent year-on-year growth in first quarter net profit to P2.38 billion, driven by higher interest earnings and treasury gains.
Total revenues grew by 20 percent year-on-year to P7.6 billion in the first three months, Security Bank disclosed to the Philippine Stock Exchange on Monday.
A core revenue component, net interest income from customer loans and deposits, grew by 29 percent year-on-year to P4.7 billion. This was driven by the continued expansion of retail loans and low-cost deposits.
Retail loans expanded by 49 percent, while low-cost deposits increased by 11 percent. Retail loans now accounted for 23 percent of total loans versus 17 percent a year ago.
The bank expanded its loan book by 12 percent year-on-year to P412 billion in the first three months. On the funding side, deposit base grew by 10 percent year-on-year to P461 billion during the period.
Total net interest income grew by 15 percent to P5.8 billion. Interest income from financial investments went up by 11 percent. Overall, its net interest margin increased by 19 basis points year-on-year to 3.43 percent in the first quarter.
Service charges, fees, and commissions also increased by 26 percent to P857 million. Major contributors were credit cards, loan fees, bancassurance, deposit charges, and stock brokerage.
On the other hand, securities trading gains surged by 61.3 percent year-on-year to P671 million in the first three months.