Security Bank Corporation’s net income income dipped to P6.9 billion in 2021 from P7.4 billion in the prior year because the passage of the CREATE law triggered a one-time P1.2 billion charge for deferred tax assets.

In a disclosure to the Philippine Stock Exchange, the bank said its profit before tax was P10.3 billion, up 141 percent from the same period last year.

Net interest income was P27.5 billion, down 10 percent from year-ago level as net interest margin for the full year was 4.43 percent, down by 27 basis points year-on-year.

Total non-interest income was P9.4 billion, down 53 percent as performance in 2020 was buoyed by extraordinary securities trading gains.

Service charges, fees and commissions increased 25 percent to P4.5 billion, with fee income sources increasing from their year-ago levels.

Other non-interest income excluding securities trading gains and fee income grew 34 percent to P3.7 billion.

Operating expense was up by 8 percent from the same period last year, driven by investments in technology and manpower to improve customer experience. The cost-to-income ratio was 57.8 percent.

Pre-provision operating profit (PPOP) was P15.5 billion. The Bank set aside P5.3 billion as provisions for credit losses in 2021, a significant decrease from the year-ago level of P26.4 billion.

For the fourth quarter of 2021, net income was P2.1 billion, up 21 percent versus quarter-ago level and up 171 percent versus year-ago level.

“Our fourth quarter results benefitted from the easing of mobility restrictions and the resulting uplift of the economy,” said Security Bank President and CEO Sanjiv Vohra.

He added that, “We are optimistic about economic activity in 2022, despite the Omicron impact in January. The Bank’s retail and wholesale teams are fully engaged to support our clients as the economy continues to reopen.” For 2021, low-cost savings and demand deposits grew 19 percent and increased to 61 percent of total deposits while high-cost deposits increased 18 percent. Total deposits increased 19 percent year-on-year to P524 billion.

Gross loans stood at P467 billion, up 1 percent versus year-ago. Retail loans were down 9 percent year-on- year and accounted for 23 percent of total loans versus 25 percent a year ago while wholesale loans increased 5 percent year-on-year.