By James A. Loyola Security Bank Corporation reported a 21 percent jump in net profit to P2.9 billion in the first quarter of 2020 as total revenues surged 75 percent to P13.2 billion due to the sustained growth in core business income and securities trading gains. In a disclosure to the Philippine Stock Exchange, the bank said that, excluding trading gains, total revenues rose 41 percent to P9.7 billion from the same period last year. Total net interest income increased 41 percent to P8.1 billion as net interest margin improved to 129 basis points to 4.68 percent in the first quarter of the year. Total non-interest income increased 184 percent to P5.1 billion. Securities trading gains amounted to P3.5 billion, 420 percent higher than the P671 million a year ago. Operating expense grew 28 percent driven primarily by manpower and costs related to business expansion. The cost-to-income ratio improved to 39.4 percent from 53.7 percent a year ago. Pre-provision operating profit in the first quarter of 2020 was P8 billion, 129 percent higher than a year ago. The bank set aside P5.7 billion as provisions for credit losses in the first quarter of 2020. This is more than the full- year 2019 provision for credit losses of P4.2 billion. Factors impacting the increase in provisions included: credit model refinements reflecting the Bank’s views on the current environment, headwinds in consumer and commercial lending, and the change in the loan mix towards more consumer loans. In view of the possible client impact of the pandemic, the Bank has initiated portfolio reviews, reassessed its provisioning, and intensified client engagement during this period.