Security Bank profit surged 77% in January-September

Security Bank Corp. said profits from January to September shot up 77 percent to P8.6 billion after strong core income growth and a sharp increase in foreign exchange gains.

The lender said total revenues during the nine-month period were up 7 percent to P29.4 billion as net interest income expanded by 7 percent to P22 billion compared the same period last year.

Moreover, non-interest income added 6 percent to P7.4 billion as service, charges, fees and commissions climbed 22 percent.

Removing trading gains and fee income, Security Bank recorded a 32-percent earnings jump to P3.6 billion, driven by foreign exchange gains and the recovery of certain debts.

“Our third quarter results reflect continued growth for our retail and wholesale client segments,” Security Bank president and CEO Sanjiv Vohra said in a statement.

For the third quarter alone, net income increased 35 percent to P2.3 billion while revenues reached P10.2 billion, up 12 percent. Pre-provision operating profit stood at P4.4 billion, up 17 percent.

“We channeled resources to support economic expansion, to address inflation impacts and to enhance both customer and employee experience,” Vohra said.

Security Bank’s profits also improved as credit expenses were cut during the period.

Provisions for credit losses fell 60 percent to P1.6 billion as the total non-performing loan (NPL) ratio shrank to 3.24 percent from 4.15 percent. NPL reserve cover increased to 94 percent from 91 percent in previous year.

During the third quarter alone, Security Bank aside P1.2 billion as provisions for credit losses.

Meanwhile, savings and demand deposits rose 13 percent, accounting for 58 percent of total deposits.

It said total deposits thus climbed by 12 percent to P583 billion.

At the same time, net loans pushed higher by 12 percent to P484 billion driven by wholesale and retail loans, up 12 percent respectively.

“On a sequential quarter-on-quarter basis, net loans decreased by 1 percent, with retail loans up 5 percent and wholesale loans down 3 percent. Retail loans are 24 percent of total loans, up from 23 percent a quarter ago,” Security Bank said in the statement.

It ended the period with a common equity tier 1 Ratio of 16.6 percent and a total capital adequacy ratio of 17.1 percent. Total assets jumped 14 percent to P799 billion, the statement showed.