Security Bank Corp., the sixth-largest lender in terms of assets, said net income in the first six months of 2018 dropped 18 percent or P951 million to P4.3 billion year-on-year due mainly to lower trading gains during the period.
The bank said in a statement Tuesday trading gains declined 59 percent or P655 million while the provision for income tax increased 55 percent or P424 million on year.
Loans rose 12 percent on year while deposits increased 17 percent. Net interest income from customer loans and deposits climbed 34 percent or P1.8 billion to P7.4 billion.
Interest income from financial investments decreased 13 percent or P717 million to P4.8 billion on lower securities portfolio, which likewise dropped 13 percent on the year.
Total net interest income, meanwhile, grew 8 percent to P10 billion. Service charges, fees, and commissions increased 16 percent to P1.3 billion. The growth in fee income was broad-based, led by bancassurance, credit card, and loan fees.
Deposit growth rose 17 percent, increasing by P63 billion from the year-ago level to reach P443 billion as of June 30, 2018. Low-cost deposits climbed 15 percent. The loan-to-deposit ratio improved to 86 percent from 90 percent a year ago.
Asset quality remained healthy, with gross non-performing loan ratio down to 0.6 percent from 0.7 percent a year ago.
“Security Bank’s judicious use of capital resulted in sustained strong capital adequacy ratios. Common equity tier 1 ratio was at 16.19 percent and total capital adequacy ratio was at 18.46 percent in the second quarter versus 16.63 percent and 18.95 percent, respectively, a year ago,” the bank said.
The bank remained among the country’s best capitalized private domestic universal banks with the highest capital adequacy ratios. Return on shareholders’ equity was 8.1 percent.
Shareholders’ capital was P107 billion, up 6 percent from year-ago level. Total assets stood at P722 billion.