Security Bank income up 12% on loan book growth

Security Bank Corp. reported a 12-percent growth in nine-month earnings to P8.5 billion as easing interest rates boosted its loan portfolio.

The bank led by tycoon Frederick Dy likewise saw a 28-percent surge in revenues to P40 billion, with net interest income jumping by more than a third to P32.4 billion.

Net loans climbed by 24 percent on sustained growth in home loans and credit cards.

READ: To entice more clients, Security Bank is playing a new game

A 24-percent increase in operating expense tempered growth, mostly due to manpower and technology investments made to “accelerate transformation.”

In the third quarter alone, net interest income went up by 19 percent to P10.7 billion.

Noninterest income during the quarter ballooned by 129 percent to P3.6 billion, driven by securities trading gains alongside service charges, fees and commissions.

“We are pleased with our third-quarter results. The combination of our client management, significant investments in our team and our technology has accelerated the bank’s growth,” Security Bank president and CEO Sanjiv Vohra said in a statement.

P40 billion in new loans

As of end-September, total assets at the country’s eighth-largest bank reached P1 trillion, up by 26 percent.

Earlier this year, Security Bank said they wanted P40 billion in new loans within the next two years, coming from a P43.6-billion total as of 2023.

It also recently raised P5 billion from the debt market after demand “significantly exceeded” targets.

The issuance, which has a yield of 6.05 percent and will mature in five years and one month, is part of Security Bank’s P200-billion bond and commercial paper program.

The Philippine Dealing and Exchange Corp. has so far seen P306.23 billion in domestic bonds this year, still below its P400-billion target. —Meg J. Adonis