Security Bank earns P2.6 billion in Q1

Keisha Ta-Asan - The Philippine Star
Security Bank earns P2.6 billion in Q1
Security Bank’s head office in Ayala Avenue.
Photo Release.

MANILA, Philippines — Security Bank Corp. earned 11 percent more to P2.62 billion in the first three months from P2.36 billion in the same period last year amid the robust growth in the bank’s retail and micro, small, medium enterprise (MSME) businesses.

“Our results for the first quarter reflect both accelerating momentum across our retail, MSME and wholesale segments,” Security Bank president and CEO Sanjiv Vohra said.

“We are excited to introduce our brand-new Security Bank app in the second quarter, which will enhance the online banking experience and reinforce our BetterBanking commitment,” Vohra added.

In a disclosure to the Philippine Stock Exchange yesterday, the bank said its revenues climbed by 27 percent to P12.5 billion from a year ago.

The bank’s net interest income surged by 44 percent to P10.73 billion as net interest margin rose to 5.32 percent from 4.06 percent as of end-December 2023.

Its non-interest earnings stood at P1.8 billion in the first quarter as income from service charges, fees and commissions more than doubled to P3.1 billion.

On the other hand, operating expense rose by 24 percent to P9.11 billion, driven by sustained investments in manpower and technology.

According to Security Bank, its provision for credit and impairment losses plunged by 30 percent to P1.5 billion in the January to March period. Gross non-performing loan (NPL) ratio went up to 1.46 percent from 1.37 percent in the previous quarter, while NPL reserve cover decreased to 81.05 percent from 82.13 percent.

The bank’s loan book grew by 12 percent to P545 billion in the first quarter on the back of a 32-percent increase in retail and MSME loans and a four percent rise in wholesale loans.

The growth in retail loans was attributable to the 18-percent rise in home loans, 46-percent surge in auto loans and 49-percent jump in credit card loans. Meanwhile, MSME loans grew 74 percent.

The lender’s return on assets inched up to 1.2 percent from 1.15 percent a year ago, while return on shareholders’ equity increased to 7.71 percent from 7.42 percent.

The assets of the 71-year-old bank grew by 12 percent to P887 billion in the first quarter. It also reported a common equity tier 1 ratio of 14.4 percent and capital adequacy ratio of 15.3 percent.

Security Bank has a total of 328 branches and 663 ATMs nationwide.


vuukle comment


  • Latest
  • Trending
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

or sign in with