Security Bank posts record R10.3-B income

Security Bank Corporation reported a 20 percent jump in net income to a record R10.3 billion in 2017 on the back of a 20 percent growth in total revenues to R25.1 billion.

In a disclosure to the Philippine Stock Exchange, the bank said 2017 saw a 22 percent increase in net interest income to R19.4 billion and a 15 percent growth in noninterest income to R5.7 billion.

Trading gains amounted to R2.4 billion, up 36 percent, as service charges, fees and commission income was 3 percent higher at R2.2 billion.

For the fourth quarter 2017, net income increased 49 percent yearon-year to R2.9 billion, driven by a 16 percent growth in net interest income to R5 billion and gain on sale of securities of R1.3 billion.

Loans increased 28 percent to R369 billion with wholesale loans growing 25 percent. Corporate loan growth was 25 percent and middle market loan growth was 24 percent.

Consumer loans continued with its trajectory, growing 49 percent and accounting for 16 percent of total loans, up from 13 percent in 2016.

Deposits grew 19 percent, with low-cost deposits growing 18 percent. Net interest margin improved to 3.3 percent in the fourth quarter of 2017 from 3.2 percent of previous quarter and 3.1 percent a year ago.

Asset quality remained healthy with net non-performing loan ratio (NPL) at 0.02 percent at year-end 2017, an improvement from 0.11 percent of third quarter 2017.

Provision for credit losses during the year was R656 million. Non-performing loan reserve cover increased to 239 percent at year-end 2017 from 220 percent of previous quarter.

Total assets grew 9 percent to R756 billion with shareholders’ capital at R105 billion, up 8 percent. Return on average shareholders’ equity was 10.2 percent while return on average assets was 1.5 percent.