Security bank net income drop 46% to ₱3.1 B in H1
Security Bank Corporation (PSE: SECB) posted 46 percent drop in net profit to ₱3.1 billion in the first half of 2021 from the ₱5.7 billion reported for the same period last year.
In a disclosure to the Philippine Stock Exchange, the bank said its profit before tax was up 20 percent to ₱5.5 billion versus the same period last year.
Net interest income for the first half reached ₱13.6 billion, down 14 percent from year-ago level. Non-interest income was ₱4.8 billion, down 52 percent as 2020 was buoyed by extraordinary securities trading gains.
Service charges, fees and commissions increased 28 percent to ₱2.1 billion, with fee income sources increasing from their year-ago levels.
Operating expense in the first half of 2021 was slightly up 0.9 percent from the same period last year, driven by investments in technology and manpower to improve customer experience.
Pre-provision operating profit (PPOP) was ₱8.0 billion. The Bank set aside ₱2.4 billion as provisions for credit losses in the first half of 2021, a significant decrease versus ₱11 billion in the same period last year.
Gross non-performing loan ratio was 3.93 percent. Non-performing loan reserve cover was 103 percent.
For the April 1 to June 30, 2021 period, net income was ₱1.5 billion. On a sequential quarter-on-quarter basis, total revenues increased 9 percent to ₱9.6 billion.
Net interest income grew 4 percent to ₱6.9 billion. Non-interest income increased 23 percent to ₱2.6 billion.
Net interest margin in the second quarter of 2021 was 4.29 percent, up 7 basis points quarter-on-quarter and down 35 basis points year-on-year.
Pre-provision operating profit in the second quarter of 2021 was ₱4.3 billion, 15 percent higher than quarterago level. In the second quarter of the year, the Bank set aside ₱2 billion as provisions for credit losses. (James A. Loyola)