Security Bank posts P8.6-B in 2018
Security Bank Corporation posted P8.6 billion in net income in 2018.
A key component of the Bank’s earnings is net interest income from customer loans and deposits, which increased by 30% or P3.6 billion to P15.7 billion. This was driven by the continued expansion of consumer loans and low-cost deposits.
Consumer loans grew 47% while low-cost deposits increased 15%. Consumer loans now account for 20% of total loans versus 16% a year ago.
Total loans increased 12% to P416 billion. Wholesale loan growth was 7%. Total deposits increased 18% to P489 billion. The Bank’s interest margins continued to improve. Net interest spread on loans and deposits further increased to 4.72% in fourth quarter 2018, up by 29 basis points quarter-on-quarter and up by 48 basis points year-on-year.
Interest income from financial investments was lower by 11% or P1.2 billion mainly due to a lower level of investment securities at amortized cost. Total net interest income grew by 7% to P20.8 billion. Overall, net interest margin further improved to 3.4% in fourth quarter 2018, up by 10 basis points quarter-on-quarter and up by 13 basis points year-on-year. /