Security Bank profit falls to P7.4B last year
SECURITY Bank Corp. saw its net income decline to P7.4 billion last year on higher net interest profit and trading gains.
In a filing on Tuesday, the listed lender reported that the amount was a 26.4-percent drop from P10.1 billion in 2019.
Its revenues surged by 48 percent year-on-year to P50.4 billion, while its pre-provision operating profit expanded by 85 percent to P30.7 billion from the year-earlier figure.
Net interest income grew by 14 percent to P30.6 billion. Net interest margin for full-2020 rose by 84 basis points to 4.77 percent.
Gains from securities trading increased to P13.4 billion from P1.5 billion a year ago. Lower transaction values dragged service charges, fees and commissions to P3.63 billion, 11 percent lower than 2019’s P4.08 billion.
Miscellaneous income ballooned by 249 percent to P1.7 billion, which Security Bank attributed to Thailand’s Bank of Ayudhya Public Co. Ltd.’s acquisition of a 50-percent stake in consumer finance subsidiary SB Finance Co. Inc.
“Our 2020 results reflect the fundamental strength of Security Bank amid a very challenging pandemic-impacted environment,” Security Bank President and Chief Executive Officer Sanjiv Vohra said in the filing.
“Our retail and wholesale teams maintained their steadfast support of our core clients. Our financial markets team nimbly navigated significant market movements. We supported our employees through the necessary operating model pivots, as well as fortified the bank’s balance sheet with credit provisions,” he added.
Prompted by the coronavirus pandemic, the bank set aside P26.4 billion as provisions for credit losses last year, compared with 2019’s P4.2 billion.
Gross loans reached P460 billion, up 1 percent. Retail loans, which accounted for a quarter of the total, slipped by 10 percent.
Total assets stood at P653 billion, sliding by 18 percent from P793 billion a year earlier. Shareholders’ capital climbed by 4 percent to P123 billion.
Established in 1951, Security Bank is the country’s eighth largest private bank, It currently has 313 branches and 787 automated teller machines nationwide.
Security Bank shares added P3 or 2.31 percent to close at P133 each on Tuesday.