SECURITY BANK’S Q1 PROFIT UP 66%

Tycoon Frederick Dy-led Security Bank Corp. recorded a 66-percent year-on-year profit surge in the first quarter of the year to P2.7 billion.

In a statement on Tuesday, the lender attributed the strong financial performance to the growth in core businesses, lower credit provisions and normalized income tax provisions.

“Despite the Omicron impact in January, we are pleased with the improvement in client activity levels for the first quarter, particularly for our corporate and home loans teams,” Security Bank president and CEO Sanjiv Vohra said.

“Various macro factors are unfolding in the coming months including: new government policy, the war in Ukraine and central bank action on inflation, we are constructively engaged with our clients to help them navigate the current environment,” he added.

Gains during the first quarter were bolstered by a 5-percent increase in net interest income to P7 billion.

Its noninterest income also rose by 8 percent to P2.3 billion, while service charges, fees and commissions jumped 22 percent to P1.3 billion.

Security Bank said other noninterest income, excluding securities trading gains and fee income, also hit P1 billion, up 168 percent.

Meanwhile, operating expenses were up 8 percent from increasing spending on “technology and manpower to improve customer experience. The cost-to-income ratio was 58.96 percent compared with 57.6 percent a year ago, the lender emphasized.

Security Bank said it set aside P80 million as expenses for credit losses during the quarter, down from P402 million during the same period last year.

Gross nonperforming loan ratio decreased to 3.65 percent from 3.94 percent in previous quarter. The nonperforming loans reserve cover stood at 90 percent.