Security Bank Q1 earnings sharply higher

MANILA, Philippines–Security Bank Corp. posted a 135-percent year-on-year jump in first-quarter net profit to P3.36 billion on the back of trading gains and stable interest earnings.

In a press statement on Thursday, SECB said this three-month performance translated to an annualized 28-percent return on equity.

Net interest income grew by a modest 4 percent to P2.9 billion, capped by the anticipated rise in interest expense arising from the issuance of P10 billion Basel 3-compliant Tier 2 capital in July 2014 and $300 million senior unsecured notes issued in January 2015.

The Basel 3 framework prescribes a complex package of reforms designed to improve the ability of banks to absorb losses; extend the coverage of financial risks; and put in place stronger firewalls against periods of stress.

Amid the increase in interest expense, net interest margin was stable at 3.3 percent for the period, the same level as in the previous quarter and versus the 3.4 percent average in 2014.