Security Bank H1 profit rises 4% to P6.1B

MANILA. Philippines — Security Bank Corp. grew its first-half net income by 4 percent, supported by stronger revenues and improved operating efficiency.

In a disclosure on Friday, the Frederick Dy-led bank said it booked P6.1 billion in net income from January to June.

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Second-quarter net income rose 11 percent year-on-year and 25 percent quarter on quarter to P3.4 billion. Pre-provision operating profit rose by a faster 21 percent to P15.4 billion, while total revenues increased 11 percent to P34.9 billion.

On one hand, net interest income reached P32.4 billion, with net interest margin at 5.78 percent. On the other hand, service charges, fees and commissions stood at P4.2 billion.

Meanwhile, operating expenses grew by a slower 3 percent, bringing Security Bank’s cost-to-income ratio down to 55.7 percent from 59.6 percent a year earlier.

In addition, Security Bank had set aside P7.6 billion in provisions for credit losses during the first half.

Still, asset quality improved. The gross non-performing loan ratio eased to 3.04 percent from 3.16 percent a year ago and 3.08 percent in the previous quarter.

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Non-performing loan reserve cover increased to 85 percent from 79 percent a year earlier. For the second quarter alone, revenues rose 11 percent year on year to P17.9 billion.

Meanwhile, pre-provision operating profit increased 19 percent to P7.9 billion, while provisions for credit losses eased to P3.7 billion from P3.9 billion in the first quarter.

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Security Bank ended June with P891 billion in total deposits, with current and savings account (CASA) deposits growing 8 percent year on year.

CASA deposits accounted for 52 percent of the total. Net loans stood at P675 billion, up 1 percent, as the bank continued to rebalance its portfolio toward higher-quality segments.

READ: Security Bank vows to cut emissions by 62% by 2035

“As Security Bank marks its 75th year, we are building momentum with discipline,” Security Bank president and CEO Victor Lee said.

“Our focus is to keep growing responsibly while making banking simpler, faster, and more responsive for the customers and businesses we serve,” Lee added. /pai