Security Bank doubles profit in H1

Published August 15, 2022, 3:45 PM

by James A. Loyola

Security Bank Corporation doubled its net income to P6.2 billion in the first half of 2022, driven by growth in core businesses, lower credit provisions and normalized income tax provisions.

“We are very pleased by the continued improvement in our core businesses. Our growth in loans and investment securities, is a tangible manifestation of our commitment to clients to support the reopening of the economy and address the impact of inflation,” said Security Bank President & CEO Sanjiv Vohra.

Security Bank

In a disclosure to the Philippine Stock Exchange, the bank said its net interest income increased 6 percent to P14.4 billion while total non-interest income was at P4.8 billion.

Service charges, fees and commissions grew 22 percent to P2.6 billion, led by increase in fees from deposits, credit cards and capital markets.

Other non-interest income excluding securities trading gains and fee income rose 47 percent to P2.2 billion, driven mainly by foreign exchange income and recovery on charged-off assets.

Pre-provision operating profit was P8.5 billion, up 6 percent year-on-year. The bank set aside P408 million as provisions for credit losses in the first half of 2022, a decrease versus year-ago level of P2.4 billion.

Gross non-performing loan ratio decreased to 3.28 percent from 3.65 percent in previous quarter. NPL reserve cover increased to 92 percent from 90 percent in previous quarter.

Low-cost savings and demand deposits grew 18 percent and increased to 59 percent of total deposits from 55 percent a year ago. This drove total deposits to grow 9 percent year-on-year to P569 billion.

Net loans increased 15 percent year-on-year to P490 billion, driven by wholesale loans which grew 18 percent and retail loans which grew 6 percent. Retail loans are 23 percent of total loans compared to 26 percent a year ago.