MANILA, Philippines — Security Bank Corp. recorded a double-digit increase in earnings in the first nine months after a strong performance of its core businesses in the third quarter.
In a disclosure to the Philippine Stock Exchange (PSE), the country’s fifth largest bank said its registered a net income of P7.4 billion from January to September, 12.1 percent higher than the P6.6 billion recorded in the same period last year.
The bank’s interest income jumped 24 percent to P14.3 billion in the first nine months as its lending grew 38 percent to P370 billion, while deposits surged 44 percent to P431 billion.
Non-interest income including trading gains fell 15 percent to P3.5 billion. Service charges, fees and commissions inched up two percent to P1.6 billion.
Operating expenses, excluding provisions for credit and impairment losses, were up 17 percent due to the 22 percent increase in manpower cost with the staffing of new branches, retail lending and ecommerce platforms.
Security Bank opened eight branches in the first nine months, bringing its footprint to 298 branches and 694 ATMs nationwide.
Depreciation and amortization and software costs increased 40 percent due to the major information technology upgrade and branch network expansion. The cost-to-income ratio was 50.6 percent.
For the third quarter alone, Security Bank said its net profit went up 21 percent to P2.14 billion from P1.8 billion in the same quarter last year.
The bank’s net interest income surged 22 percent to P5 billion from July to September.