Security Bank Corporation registered a 12 percent year-on-year growth in net profit to P8.5 billion in the first nine months of 2024 as revenue growth accelerated to 28 percent compared to the 24 percent posted in the first semester of the year.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said total revenues increased to P40 billion, driven by growth in both net interest income and non-interest income. 

Net interest income increased 31 percent to P32.4 billion as net interest margin remained robust at 4.90 percent in the first nine months of 2024. 

Total non-interest income likewise increased 18 percent year-on-year to P7.6 billion. Service charges, fees and commissions grew 55 percent to P6.7 billion.

Operating expense was 24 percent higher, driven by investments in manpower and technology to accelerate transformation. Cost-to-income ratio was 58.8 percent which is better than the 60.7 percent a year ago.

Pre-provision operating profit was up 34 percent year-on-year to P16.5 billion. The bank set aside P5.1 billion as provisions for credit losses in the first nine months of 2024, an increase versus year-ago level of P2.6 billion, while gross non-performing loan ratio was 3.08 percent and NPL reserve cover was 79.5 percent.

Return on shareholders’ equity was 8.1 percent. Return on assets was 1.2 percent.

Total deposits increased to P720 billion, up 28 percent year-on-year. Current and savings account deposits increased 11 percent year-on-year with CASA as percent of total deposits at 53 percent.

Net loans accelerated to 24 percent growth rate year-on-year from the 19 percent posted in the second quarter of 2024. Quarter-on-quarter, net loans increased eight percent, amounting to P623 billion as of Sept. 30, 2024. 

Retail and MSME loans sustained its growth, up 38 percent year-on-year. Wholesale loans accelerated to 19 percent growth rate year-on-year from the 14 percent posted in the second quarter of 2024. 

The growth in retail and MSME loans was driven by home loans which grew 21 percent, credit cards which rose 70 percent, auto loans which grew 51 percent, and MSME loans which increased 58 percent. Total investment securities grew 30 percent year-on-year to P280 billion.

The bank maintains healthy liquidity, with Liquidity Coverage Ratio (LCR) at 186 percent and Net Stable Funding Ratio (NSFR) at 135 percent as of Sept. 30, 2024.

Security Bank’s capital ratios remain strong. Common Equity Tier 1 Ratio was 13.3 percent and Total Capital Adequacy Ratio (CAR) was 14.2 percent. 

Total assets increased to P1 trillion, up 26 percent year-on-year. Shareholders’ capital likewise increased to P143 billion, up eight percent year-on-year.