SECURITY Bank Corp. reported on Monday that it has posted a 100-percent growth in its net income in the first six months of the year, on the back of expansion in core businesses, lower credit provisions and normalized income tax provisions.
The bank’s net income in January to June hit P6.2 billion. Broken down, Security Bank’s net interest income increased 6 percent to P14.4 billion. Total non-interest income, meanwhile, was at P4.8 billion.
Service charges, fees and commissions grew also 22 percent to P2.6 billion, led by increase in fees from deposits, credit cards and capital markets. Other non-interest income excluding securities trading gains and fee income rose 47 percent to P2.2 billion, driven mainly by foreign exchange income and recovery on charged- off assets.
Security Bank also reported a 4-percent increase in its operating expense, which the bank attributed to improvements in technology and manpower.
Cost-to-income ratio was 55.9 percent compared to 56.4 percent a year ago.
“We are very pleased by the continued improvement in our core businesses. Our growth in loans and investment securities is a tangible manifestation of our commitment to clients to support the reopening of the economy and address the impact of inflation,” Security Bank President and CEO Sanjiv Vohra was quoted in a statement as saying.
The bank’s non-performing loan (NPL) reserve cover increased to 92 percent from 90 percent in the previous quarter.
Return on assets increased to 1.7 percent from 0.92 percent in the first half of 2021. Return on shareholders’ equity, meanwhile, increased to 10 percent from 5.05 percent a year ago.
On the deposit front, the bank reported that its low-cost savings and demand deposits grew 18 percent and increased to 59 percent of total deposits from 55 percent a year ago.
This drove total deposits to grow 9 percent to P569 billion.
Net loans, on the other hand, increased 15 percent to P490 billion, driven by wholesale loans which grew 18 percent and retail loans which grew 6 percent. Retail loans are 23 percent of total loans compared to 26 percent a year ago.
For its capital, Security Bank’s Common Equity Tier 1 Ratio was 16.7 percent and Total Capital Adequacy Ratio (CAR) was 17.2 percent both above local and international regulatory standards.
