Security Bank Corp., one of the top lenders in terms of assets, said Monday net income in the first six months of 2022 jumped 100 percent to P6.2 billion from P3.1 billion a year ago, driven by growth in core businesses, lower credit provisions and normalized income tax provisions.
Net interest income increased 6 percent to P14.4 billion, while total non-interest income was at P4.8 billion. Service charges, fees and commissions grew 22 percent to P2.6 billion, led by increase in fees from deposits, credit cards and capital markets.
“We are very pleased by the continued improvement in our core businesses. Our growth in loans and investment securities is a tangible manifestation of our commitment to clients to support the reopening of the economy and address the impact of inflation,” Security Bank president and chief executive Sanjiv Vohra said in a statement.
Pre-provision operating profit rose 6 percent year-on-year to P8.5 billion. The bank set aside P408 million as provisions for credit losses in the first half, lower than P2.4 billion a year earlier.
Meanwhile, Philippine National Bank controlled by airline and tobacco tycoon Lucio Tan posted a 50-percent decline in net income in the first half to P11.1 billion from P22.1 billion a year ago.
“The year-to-date net income is lower than the P22.1-billion net income posted for the same period last year as the bank recognized a one-off P33.6 billion gain from the property-for-shares swap transaction executed in 2021,” the bank said in a statement. Julito G. Rada
“Taking out the effect of this one-off transaction, the operating income of the bank increased by 20 percent year-on-year to P26.1 billion,” it said.
Net interest income increased by 3 percent from the same period last year to P17.3 billion on account of higher yields on loans and receivables, coupled with lower cost rate of deposits, improving the net interest margin of the bank to 3.4 percent from 3.3 percent in the same period in 2021.
“PNB continues to be profitable despite the challenging economic and rate environment,” PNB acting president Florido Casuela said.
“Our strategy is in place and we are pursuing a growth path amidst a recovering economy. Our various businesses continue to focus on the needs of our customers as we support the local economy,” he said.