Security Bank's 9-month profits rise 77%
Security Bank Corporation posted a 77 percent jump in net income to P8.6 billion in the first nine months of 2022 from P4.8 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the bank said the hike in earnings was driven by growth in core businesses, lower credit provisions and normalized income tax provisions.
Total revenues improved 7 percent to P29.4 billion year-on-year as net interest income increased 7 percent to P22 billion. Net interest margin in the first nine months was 4.33 percent.
Total non-interest income increased 6 percent to P7.4 billion. Service charges, fees and commissions grew 22 percent to P3.9 billion, led by increase in fees from credit cards, deposits and capital markets.
Other non-interest income excluding securities trading gains and fee income rose 32 percent to P3.6 billion, driven mainly by foreign exchange income and recovery on charged-off assets.
Operating expense was 5 percent higher, driven by investments in manpower and technology to improve customer experience. Cost-to-income ratio was 56.3 percent compared to 57.3 percent a year ago.
Pre-provision operating profit was P12.8 billion, up 9 percent year-on-year. The Bank set aside P1.6 billion as provisions for credit losses in the first nine months of 2022, a 60 percent decrease versus year-ago level of P4.1 billion.
Gross non-performing loan ratio decreased to 3.24 percent from 4.15 percent in previous year. NPL reserve cover increased to 94 percent from 91 percent in previous year.
For the third quarter of 2022, net income rose 35 percent to P2.3 billion as revenues grew 12 percent year-on-year to P10.2 billion.
Pre-provision operating profit was P4.4 billion, up 17 percent year-on-year. The Bank set aside P1.2 billion as provisions for credit losses in the third quarter of 2022.
Total non-interest income increased 6 percent quarter-on-quarter to P2.6 billion. Service charges, fees and commissions was at the P1.3 billion level, same as quarter ago.
Other non-interest income excluding securities trading gains and fee income rose 12 percent to P1.4 billion, driven by foreign exchange income, profit from assets sold, and recovery on charged-off assets.
Low-cost savings and demand deposits grew 13 percent year-on-year and account for 58 percent of total deposits. Total deposits grew 12 percent to P583 billion.
Net loans increased 12 percent year-on-year to P484 billion, driven by both wholesale and retail loans which grew 12 percent each.
“Our third quarter results reflect continued growth for our retail and wholesale client segments. We channeled resources to support economic expansion, to address inflation impacts and to enhance both customer and employee experience,” said Security Bank President and CEO Sanjiv Vohra.