Higher net interest income and trading gains lifted the net earnings of Security Bank Corp. in the first half by 14 percent year-on-year.
The listed bank in a disclosure on Thursday reported that its bottom-line figures reached P5.7 billion as of end-June, which is an improvement from some P5 billion it booked in the same period last year.
For the second quarter alone, net income climbed by 8 percent to P2.8 billion.
Total revenues surged by 68 percent to P25.9 billion while total net interest income rose by 34 percent to P15.8 billion in the first semester.
Securities trading gains in the first half grew by more than seven times to P7.2 billion. Service charges, fees and commission declined by 10 percent to P1.7 billion.
Security Bank earmarked P11-billion worth of buffer for potential credit losses, which is markedly higher than last year’s P639 million. Gross nonperforming loan (NPL) ratio stood at 1.58 percent while NPL coverage ratio was at 174 percent.
“As we expect the impact of the pandemic on our loan portfolio will continue to unfold over the coming quarters, we have adopted a proactive stance on our provisions,” Security Bank President Sanjiv Vohra said.
“In spite of that, our balance sheet remains strong and allows us to invest in our transformation initiatives which help us deliver ‘BetterBanking’ to our clients during these challenging times.”
As of end-June, total assets and capitalization were P740 billion and P127 billion, respectively.
Capital adequacy ratio was at 19.7 percent while common equity tier 1 ratio was registered at 18.8 percent. Both are above the minimum regulatory requirements.
Security Bank booked total deposits and loans of P511 billion and P450 billion, respectively, in the first half.