SECURITY Bank Corp. announced recently that its net income grew 18 percent during the three quarters of the year, ending September to P7.7 billion from last year’s P6.53 billion, mainly driven by its core business income.
Revenues for the period rose 28 percent to P24.16 billion, from last year’s P18.77 billion.
For the third quarter alone, its income grew P2.7 billion, up 22 percent from last year’s P2.24 billion, while revenue grew 35 percent to P8.78 billion, from the previous P6.49 billion.
Net interest income from customer loans and deposits and peso bond issuance increased 49 percent to P5.9 billion.
“Key to this growth was the continued expansion of retail loans and low-cost deposits and disciplined pricing in wholesale loans,” the company said.
Retail loans rose 54 percent year-on-year as it now account for 27 percent of total loans versus 19 percent last year. Total net interest income grew 33 percent to P7 billion.
Total loans grew 11 percent year-on-year to P444 billion, while total deposits grew 4 percent to P487 billion.
Total deposits and peso bond issuance combined grew 8 percent to P504 billion, the bank said.
In September, the bank raised P6 billion in long-term negotiable certificates of deposit with a tenor of 5.5 years, in line with its efforts to tap funding source alternatives to short-term high-cost deposits, as well as to diversify its funding base.
Service charges, fees and commissions increased 44 percent to P1 billion, mainly driven by credit cards, loan fees, deposit charges, bancassurance and stock brokerage.
The company said it had gross nonperforming loan ratio at 1.4 percent, lower than the industry’s 1.7 percent as of August 2019.
Under the new Central Bank regulations implemented last year, requiring “Expected Credit Loss” provisioning by banks, the lender said it set aside P1.1 billion for provision for credit losses in for the third quarter, bringing the provision for credit losses in the nine-month period to P1.75 billion.
The bank said its NPL reserve cover was 110 percent and inclusive of reserves in retained earnings, NPL reserve cover was 146 percent.