MANILA, Philippines — Two banks posted higher earnings in the first three months of the year as consumer and retail loans grew against a backdrop of high interest rates.
Security Bank Corp. of tycoon Frederick Dy on Wednesday said net profit rose by 11 percent to P2.6 billion.
In a stock exchange filing, the bank added net interest income surged by 44 percent to P10.7 billion.
Net loans were up by 12 percent to P545 billion, driven by an 18-percent growth in retail and micro, small and medium enterprise loans.
Return on equity improved to 7.71 percent from 7.42 percent a year ago.
Total assets also expanded by 12 percent to P887 billion.
BankCom income up 8%
Bank of Commerce (BankCom), the lending arm of conglomerate San Miguel Corp., saw its income during the same period rise by 8 percent to P769.18 million on steady growth in its core lending business.
BankCom on Wednesday said its net interest income jumped by 16.6 percent to P2.25 billion.
READ: Lending boosts BankCom bottom line by 56%
This drove a 17-percent increase in gross revenues during the quarter to P2.25 billion.
Other income also went up by 17 percent to P398.34 million, coming from service charges, fees, and commissions.
The nonperforming loans ratio eased to 1.47 percent from 1.54 percent previously, signaling an improving asset quality.
BankCom’s total assets stood at P231.75 billion, a flat growth from P231.67 billion.