Security Bank nets 22% more to P2.7 billion in Q3

MANILA,Philippines — Security Bank Corp. reported a net income of P2.7 billion in the third quarter, up 22 percent from the P2.25 billion recorded in the same quarter of 2018.

In a disclosure, Security Bank said its net income for the nine-month period amounted to P7.7 billion, 18 percent higher compared to the P6.5 billion recorded in the same period last year.

The bank attributed the double-digit growth in its net income in the third quarter to the 35 percent year-on-year jump in revenue, which reached P8.8 billion.

“The growth in revenue was driven by core business income,” the bank said.

In particular, Security Bank said its total net interest income grew by 33 percent to P7 billion, while total loans increased by 11 percent year-on-year to P444 billion.

The bank said its net interest income from customer loans and deposits or peso bond issuance surged by 49 percent year-on-year 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 bank said.

The bank said retail loans rose by 54 percent year-on-year, now accounting for 27 percent of the bank’s total loans. Total deposits climbed four percent during the third quarter to P487 billion. This, combined with peso bond issuances, reached P504 billion, up by eight percent year-on-year.

The bank said the net interest spread on loans and deposits or peso bond issuance was 5.92 percent in the third quarter, up 57 basis points quarter-on-quarter and 149 basis points year-on-year.

Net interest margin likewise rose to 4.05 percent, higher by 47 basis points compared to the previous quarter’s level and 77 basis points from the same quarter last year.