Security Bank Corp., the fifth-largest lender in terms of assets, said Monday net income in 2017 jumped 20 percent to a record P10.3 billion from a year ago, driven by the sustained growth of core businesses.
The bank said in a statement the 2017 performance was driven by a 22-percent or P3.5-billion increase in net interest income to P19.4 billion and a 15-percent growth in non-interest income to P5.7 billion.
Trading gains jumped 36 percent to P2.4 billion, while service charges, fees and commission income reached rose 3 percent to P2.2 billion. Revenues increased 20 percent to P25.1 billion.
Security Bank said in the fourth quarter alone, net income climbed 49 percent year-on-year to P2.9 billion, led by a 16-percent growth in net interest income to P5 billion and gain on sale of securities of P1.3 billion.
Loans increased 28 percent to P369 billion. Wholesale loans grew 25 percent, of which corporate loan growth was 25 percent and middle-market loan growth was 24 percent.
“Consumer loans continued with its trajectory, growing 49 percent. Consumer loans account for 16 percent of total loans, up from 13 percent in 2016. Deposits grew 19 percent, with low-cost deposits growing 18 percent. Net interest margin improved to 3.3 percent in the fourth quarter of 2017 from 3.2 percent of previous quarter and 3.1 percent a year ago,” the bank said.
Asset quality remained healthy with net non-performing loan ratio at 0.02 percent in the fourth quarter of 2017, an improvement from 0.11 percent in the third quarter.
Provision for credit losses during the year was P656 million. NPL reserve cover increased to 239 percent at year-end from 220 percent in the previous quarter.
Operating expense growth, excluding provisions for credit and impairment losses, was 19 percent due to higher gross receipts taxes, a 14-percent growth in manpower cost and a 48-percent increase in depreciation, amortization and software costs.
“Security Bank has been supporting the growth of its retail banking and core businesses with investments in manpower, digital platform, major IT upgrade and 13 new branches opened during the year,” it said. The bank had 303 branches and 713 ATMs as of end-2017.
Total assets grew 9 percent to P756 billion. Shareholders’ capital was P105 billion, up 8 percent from 2016. Return on average shareholders’ equity was 10.2 percent, while return on average assets was 1.5 percent.
Capital adequacy ratios were healthy, with common equity tier 1 ratio at 15.5 percent and total capital adequacy ratio at 17.7 percent.
The book value per share was P139.31 as of Dec. 31, 2017, up 8 percent from a year ago. Security Bank paid cash dividends of P3 per common share, an increase from P2 per common share in 2016.