SECURITY Bank Corp. posted a 4-percent increase in first-half (H1) net income to P6.1 billion, building on the P5.9-billion profit recorded in the same period last year.
In a disclosure on Friday, the lender said pre-provision operating profit jumped 21 percent to P15.4 billion, while total revenues rose 11 percent to P34.9 billion.Security Bank President and CEO Victor Lee said the bank remained focused on growth while maintaining its financial position.“As Security Bank marks its 75th year, we are building momentum with discipline,” Lee said.“We grew revenues faster than expenses, improved efficiency, strengthened reserve cover, and maintained strong capital and liquidity.”Net interest income reached P32.4 billion, while service charges, fees and commissions amounted to P4.2 billion.Operating expenses increased 3 percent, slower than the pace of revenue growth, bringing the cost-to-income ratio down to 55.7 percent from 59.6 percent a year earlier.Second-quarter net income rose 25 percent from the previous quarter and was up 11 percent from a year earlier to P3.4 billion.Revenues increased 5 percent quarter on quarter and 11 percent year on year to P17.9 billion.Pre-provision operating profit rose 5 percent from the previous quarter and 19 percent from a year earlier to P7.9 billion.Provisions for credit losses declined to P3.7 billion in the second quarter from P3.9 billion in the first quarter.Asset quality also improved during the period. The bank’s gross nonperforming loan (NPL) ratio fell to 3.04 percent from 3.16 percent a year earlier and from 3.08 percent in the previous quarter.NPL reserve coverage improved to 85 percent from 79 percent a year earlier and from 81 percent in the first quarter.Total deposits stood at P891 billion as of end-June. Current and savings account deposits grew 8 percent year on year and accounted for 52 percent of total deposits, up from 49 percent a year earlier and from 51 percent in the previous quarter.Net loans reached P675 billion, up 1 percent year on year, as the bank continued to rebalance its portfolio toward higher-quality segments.Security Bank’s liquidity coverage ratio stood at 206 percent and its net stable funding ratio at 145 percent, both above regulatory minimums.Its common equity tier 1 ratio improved to 12.6 percent from 12.3 percent a year earlier, while total capital adequacy ratio rose to 13.5 percent from 13.2 percent.Total assets stood at P1.19 trillion as of end-June, up 3 percent year on year, while shareholders’ capital increased 5 percent to P155.7 billion.The bank’s shares on Friday slipped P0.60, or 0.88 percent, to close at P67. 40 each.
