Lender Security Bank booked P7.4 billion in net profit last year, down by 26.7 percent from the previous year as provisioning for probable loan losses surged amid the new coronavirus pandemic.
The favorable impact of higher net interest income and trading gains was offset by P26.4 billion in provisions for credit losses during the year, over six times larger than the P4.2 billion buffer set aside in 2019.
Preprovision operating profit amounted to P30.7 billion, 85 percent higher than year-ago level.
“Our 2020 results reflect the fundamental strength of Security Bank amidst a very challenging pandemic-impacted environment. Our retail and wholesale teams maintained their steadfast support of our core clients. Our financial markets team nimbly navigated significant market movements. We supported our employees through the necessary operating model pivots as well as fortified the Bank’s balance sheet with credit provisions,” Security Bank president and chief executive officer Sanjiv Vohra told the Philippine Stock Exchange on Tuesday.
Total revenue rose by 48 percent to P50.4 billion from the same period last year, driven by lending activities.
Total net interest income grew by 14 percent to P30.6 billion, supported by an uptick in net interest margin of 84 basis points to 4.77 percent.