Security Bank net income rose 1.5% to P2.38B in Q1

Security Bank saw 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 to P7.6 billion, it disclosed to the Philippine Stock Exchange on Monday.

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 from 17 percent a year ago.

The bank expanded its loan book by 12 percent to P412 billion. On the funding side, deposits grew by 10 percent to P461 billion during the period.

Net interest spread on loans and deposits increased by 78 basis points to 4.98 percent. Compared to the previous year, it added 26 basis points.

Total net interest income grew by 15 percent to P5.8 billion. Interest income from financial investments went up by 11 percent. Overall, net interest margin increased by 19 basis points to 3.43 percent.

Service charges, fees and commissions also increased by 26 percent to P857 million. Major contributors were credit cards, loan fees, bancassurance, deposit charges and stockbrokerage.
Securities trading gains rose 61 percent to P671 million.

The bank’s total non-interest income increased by 39 percent to P1.8 billion.

As a measure of efficiency, Security Bank spent 53.7 centavos to earn every peso in the first quarter, stable from its spending of 53.9 centavos in the same period last year. This was despite a 22-percent increase in overall expenses, driven mainly by gross receipts and documentary stamp taxes followed by manpower costs. Headcount increased by 450 to 5,950. —DORIS DUMLAO-ABADILLA