Security Bank Corporation’s net profit grew 11 percent to P5.4 billion in the first half of 2024, driven by accelerated growth in business drivers.
In a disclosure to the Philippine Stock Exchange, the firm said total revenues for the first half grew 24 percent year-on-year to P25.7 billion.
Net interest income increased 38 percent to P21.7 billion, with a net interest margin of 5.20 percent, up 96 basis points year-on-year. Service charges, fees, and commissions jumped 74 percent to P4.9 billion.
Operating expense was 20 percent higher in the first half of the year, driven by investments in manpower and technology to accelerate transformation. Strong performance led to a cost-to-income ratio of 58.4 percent, lower than the 60.4 percent a year ago.
The Bank set aside P3.3 billion as provisions for credit losses in the first half of 2024, an increase versus year-ago level of P1.6 billion. Gross non-performing loan ratio was 3.31 percent and NPL reserve cover was 81 percent.
Total deposits increased to P676 billion, up 29 percent year-on-year. CASA deposits increased nine percent year-on- year. CASA as percent of total deposits was at 54 percent.
For the second quarter, net loans accelerated to a 19 percent growth rate year-on-year from the 12 percent posted in the first quarter of 2024. Quarter-on-quarter, net loans increased 6 percent, amounting to P577 billion as of June 30, 2024.
Retail and MSME loans sustained its growth, up 37 percent year-on-year compared to the 32 percent posted in the first quarter of 2024. Wholesale loans accelerated to a 14 percent growth rate year-on-year from the 4 percent posted in the previous quarter of 2024.
The growth in retail and MSME loans was driven by home loans, which grew 21 percent; credit cards, which rose 60 percent; auto loans, which grew 50 percent; and MSME loans, which increased 68 percent.
On a sequential quarter-on-quarter basis, retail and MSME loans increased 8 percent. Retail and MSME loans as percent of total loans increased to 32 percent, up from 31 percent a quarter ago and 28 percent a year ago.
Total investment securities grew 22 percent.
“Our second quarter results reflect accelerating velocity for our Retail, MSME & Wholesale client teams. We allocated substantial resources to support our clients’ aspirations as indicated in the growth of loans and deposits.
“Likewise, we continue to invest in technology to improve customer experience, security & agility. This led to healthy growth in net income year-on-year and quarter-on-quarter. Operating jaws turned positive 4 percent,” said Security Bank President and CEO Sanjiv Vohra.