Security Bank bottom line grew by 15.3% in 1st half

Key lender Security Bank grew its first semester net profit by 15.3 percent year-on-year to P4.95 billion as second quarter earnings picked up pace after a flat performance at the beginning of this year.

Net profit in the second quarter went up by 32 percent year-on-year to P2.57 billion on higher interest earnings, fee-based income and trading gains, based on the bank’s regulatory filing on Wednesday. This marked a sharp improvement from the first quarter, when net profit grew by only 1 percent year-on-year.

Total net interest income for the six-month period reached P11.84 billion, gaining 18 percent year-on-year.

The bank grew its loan book by 11 percent to P427 billion at end-June. Net interest margin also increased to 3.59 percent, up by 18 basis points quarter-on-quarter and up by 42 basis points year-on-year.

Fee-based income also improved by 46 percent year-on-year to P1.86 billion.

Six-month trading gains amounted to P1.05 billion, more than double the P462.7 million gain in the same period last year. The bank also booked P151.77 million in foreign exchange gains during the first semester, a turnaround from the P6.17 million net loss in the same period last year.

Return on equity in the first semester improved to 8.8 percent from 8.1 percent in the previous year.

The bank’s total asset base grew by 8 percent to P777 billion.—DORIS DUMLAO-ABADILLA