Security Bank hikes profit by 15% in H1

Earnings of listed Security Bank Corp. climbed by 15 percent to P4.95 billion in the first half from P4.3 billion in the same period last year after a strong performance in the second quarter.

In a disclosure to the Philippine Stock Exchange (PSE), net interest income from customer loans and deposits surged by 37 percent to P10.1 billion from P7.4 billion.

The bank’s total net interest income grew by 18 percent to P11.8 billion from P10 billion.

On the other hand, Security Bank said service charges, fees and commissions surged by 46 percent to P1.86 billion from P1.3 billion. Securities trading gains totaled P1 billion from January to June this year.

Cost-to-income ratio was 53.7 percent despite a yearon-year operating expense growth, excluding provisions for credit and impairment losses, of 23 percent.

The bank’s loan book recorded a double-digit growth of 11 percent to P427 billion in the first semester from last year’s P383 billion as retail loan growth accelerated by 54 percent and its share from total loans increased to 25 percent from 18 percent.

Its deposit base inched up by 1.35 percent to P449 billion from P443 billion. The bank raised P18 billion via the issuance of two-year fixed-rate peso corporate bonds as a cost-efficient funding source alternative to short-term highcost deposits.

It added asset quality remained healthy, with gross non-performing loan (NPL) ratio at 1.1 percent versus 0.75 percent a quarter-ago, and lower than industry’s 1.7 percent average as of May.

The country’s seventh largest lender in terms of assets set aside P639 million for provision for credit losses in first half for an NPL reserve cover 127 percent.

For the second quarter alone, the net income of the country’s seventh largest lender jumped by 32 percent to P2.57 billion as total revenues jumped by 32 percent to P7.9 billion.

Net interest income from customer loans and deposits in April to June sustained its strong trajectory, growing by 44 percent to P5.4 billion due to the continued expansion of retail loans and low-cost deposits.

Retail loan growth accelerated to 54 percent year-onyear, increasing its share to total loans to 25 percent from 18 percent.

Security Bank said its loan book recorded a double-digit increase of 11 percent to P427 billion from P383 billion, while its total deposit base stood at P449 billion or 1.35 percent higher than last year’s P443 billion.