Robust lending buoys Security Bank’s earnings
The façade of Security Bank’s head office in Ayala Avenue features an installation titled Perfect Harmony—a modernized yin and yang depiction of synergy and collaboration.
Continued growth in loan demand pulled up the first-half earnings of Security Bank Corp. by 11 percent to P5.4 billion.
In a stock exchange filing on Wednesday, Security Bank said revenues had swelled by 24 percent to P25.7 billion.
Net interest income surged by 38 percent to P21.7 billion.
READ: BDO, Security Bank raising P5 billion each through bond sale
According to the country’s eighth largest bank, growth was fueled by a 37-percent increase in retail and micro, small and medium enterprise (MSME) loans.
Article continues after this advertisementBroken down, home loans grew by 21 percent; credit cards, 60 percent; auto loans, 50 percent; and MSME loans, 68 percent.
Article continues after this advertisementAs of end-June, net loans increased by 6 percent to P577 billion.
The loan expansion resulted in Security Bank’s nonperforming loans ratio, a key indicator of asset quality, rising to 3.31 percent of total loans from 3.06 percent a year ago.
“We allocated substantial resources to support our clients’ aspirations as indicated in the growth of loans and deposits,” Security Bank president and CEO Sanjiv Vohra said in a statement.
As of the first half, the bank’s total assets stood at P948 billion.
READ: Security Bank raises $400M from five-year debt
Security Bank currently has 328 branches and 662 automated teller machines across the country.
The bank earlier said they wanted P40 billion in new loans within the next two years, coming from a P43.6-billion total as of last year.
Security Bank also recently ended its P5-billion bond offer after demand had “significantly exceeded” its target.
The issuance promised a yield of 6.05 percent per annum for lenders, up from 5.7 percent previously.
Issuance, settlement and listing on the Philippine Dealing and Exchange Corp. (PDEx) will be on Aug. 20.
The notes, which will mature in five years and one month, is part of Security Bank’s P200-billion bond and commercial papers program.
PDEx expects P400 billion in domestic bond listings this year amid prospects of of interest rate cuts that could mean higher bond prices for issuers.
So far, PDEx has seen the listing of P266.4 billion worth of bonds from 14 companies. INQ
