Security Bank posts P2.25-B income

Security Bank Corporation posted P2.25 billion in net income in the third quarter this year, an increase of 5 percent from year-ago level and up 15 percent from quarter-ago. A key driver for the earnings growth was the continued expansion of the Bank’s consumer loans and low-cost deposits.

Consumer loans grew 48 percent year-on-year while low-cost deposits increased 18 percent.

Total loan growth moderated to 8 percent as wholesale loans slowed to +2 percent. Excluding a large short-term corporate bridge loan in third quarter of 2017, wholesale loans would have grown 9 percent and total loans, 15 percent. Total loans stood at P401 billion. Consumer loans now account for 19 percent of total loans, up from 14 percent a year ago. Total deposits improved 9 percent to P468 billion, with high-cost deposits inching up 3 percent.

Net interest income from customer loans and deposits for the quarter increased 23 percent year-on-year. Net interest spread on loans and deposits increased to 4.43 percent in third quarter 2018, up by 16 basis points quarter-on-quarter and up by 11 basis points year-on-year.

Service charges, fees and commissions grew 38 percent, driven by bancassurance, credit card, deposit charges and loan fees. Operating expense growth (excluding provisions for credit and impairment losses) was 13 percent.