Security Bank nets P2.35B

PHOTO from Security Bank

Security Bank booked a 16.6-percent year-on-year decline in first quarter net profit to P2.35 billion as securities trading gains were halved from last year’s level.

In a disclosure to the Philippine Stock Exchange on Wednesday, the bank also reported a P311-million increase in income tax provision during the quarter.

Three-month core revenues — comprising of net interest income, fee-based income, and trading gains attributable to customer flows — were up by 15 percent.

Net interest income from customer loans and deposits increased by 43 percent year-on-year to P3.6 billion in the first quarter.

The bank grew its loan book by 20 percent year-on-year to P367 billion. Corporate loan growth was 16 percent and middle market loan growth was 13 percent.

On the other hand, consumer loan growth accelerated to 54 percent year-on-year. With the roll-out of small business loans and personal loans in early 2017, Security Bank now has a full plate of consumer loan products consisting of home, auto, credit card, personal and small business loans, which helped net interest margin to be sustained at 3.3 percent during the quarter compared to the ratio a year ago. Consumer lending now accounts for 17 percent of total portfolio.

Interest income from financial investments decreased as the bank shrunk its securities portfolio by 11 percent year-on-year through securities sale. Service charges, fees and commissions grew by 45 percent to P683 million, led by bancassurance, credit card and loan fees.