Security Bank posts 11.6% drop in 9-month profit

MANILA  -Security Bank Corp. saw profits fall 11.6 percent to P7.6 billion during the first nine months of the year amid a sharp increase in credit expenses.

The bank’s profit declined despite a 12-percent gain in net interest income to P24.7 billion. Total non-interest income during the period reached P6.5 billion while service charges, fees and commissions grew 10 percent to P4.3 billion.

“We are encouraged by continued positive, quarter-on-quarter momentum on net interest income, net margins, loan growth, and net income,” Security Bank president and CEO Sanjiv Vohra said in a statement on Friday.

“Our core client teams have maintained a strong focus on serving evolving client needs amidst a volatile global backdrop during the third quarter,” he added.

During the nine-month period, Security Bank booked a 63-percent spike in credit provisions to P2.6 billion.

Its gross non-performing loans ratio was relatively stable at 3.15 percent versus 3.24 percent last year. NPL cover stood at 92 percent versus 94 percent last year.

Net loans from January to September rose 3.8 percent to P502 billion, driven by loans to retail and micro, small and medium sized enterprises, which jumped 22 percent.

The bank’s operating expenses increased 14 percent mainly due to investments in manpower and technology while total deposits stood at P562 billion, with low-cost savings and current account deposits accounting for nearly 60 percent of the total.