Security Bank earns record P10.3 B in 2017

MANILA, Philippines — Security Bank Corp. booked a record profit last year on the back of strong revenues from its core businesses as well as a strong recovery in trading gains.

The country’s fifth largest bank in terms of assets said its net income jumped 20 percent to P10.3 billion last year from P8.55 billion in 2016 as revenues surged 20 percent to P25.1 billion from P20.83 billion.

Security Bank said its net interest income rose 22 percent to P19.4 billion last year while non-interest income went up 15 percent to P5.7 billion.

The bank jointly owned by the family of businessman Frederick Dy and the Bank of Tokyo – Mitsubishi UFG Inc. reported a 36 percent jump in trading gains to P2.4 billion as well as a three percent increase in service charges, fees, and commission income to P2.2 billion.

The listed bank said its net income jumped 49 percent to P2.9 billion in the fourth quarter of last year from P1.9 billion in the same quarter in 2016. This was fuelled by the net interest income of P5 billion as well as the gain on the sale of securities amounting to P1.3 billion.

The loan book of Security Bank expanded by 28 percent to P369 billion from P289 billion with wholesale loans to the corporate and middle market segments growing 25 percent and 24 percent, respectively.

On the other hand, the bank reported a 49 percent jump in consumer loans that cornered a 16 percent share of the total loans.

Amid the steady rise in its loan portfolio, Security Bank said its asset quality remained healthy with net non-performing loan ratio (NPL) at 0.02 percent at year-end 2017, an improvement from 0.11 percent in the third quarter.

Its provision for credit losses amounted to P656 million as NPL reserve cover increased to 239 percent at year-end 2017.

Likewise, Security Bank reported a 19 percent rise in deposits amid the steady increase in low-cost deposits. Its cost-to-income ratio was steady at 49.8 percent.

Operating expense growth, excluding provisions for credit and impairment losses, was 19 percent due to higher gross receipts taxes, a 14 percent growth in manpower cost, and a 48 percent increase in depreciation, amortization and software costs.

“Security Bank has been supporting the growth of its retail banking and core businesses with investments in manpower, digital platform, major IT upgrade and 13 new branches opened during the year,” the bank said.