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Security Bank ups profit to P10.1b

Security Bank Corp., the seventh-largest lender in terms of assets, said net income in 2019 jumped 17 percent to P10.1 billion from a year ago.

The bank said in a statement Friday total revenues increased 33 percent to P33.9 billion as core business income sustained its growth momentum.

Net interest income from customer loans and deposits/peso bond issuance grew 43 percent to P22.5 billion. The growth was driven by rising retail loans and low-cost deposits.

Retail loans rose 56 percent and now account for 29 percent of total loans from 20 percent a year ago. Wholesale loans decreased 2 percent due to tempered loan demand and disciplined pricing.

Total loans increased 9 percent to P456 billion. Low-cost deposits climbed 19 percent and grew to 45 percent of total deposits, up from 38 percent in 2018. Net interest spread on loans and deposits/peso bond issuance in 2019 improved to 5.53 percent, up 112 basis points year-on-year.

Total net interest income increased 29 percent to P26.8 billion, while net interest margin in 2019 improved to 3.93 percent, up 66 basis points year-on-year.

Service charges, fees and commissions rose 40 percent to P4.1 billion. Fee income was driven by credit cards, loan fees, deposit charges and bancassurance.

Securities trading gains amounted to P1.5 billion, up 320 percent from P366 million in 2018. Total non-interest income increased 49 percent to P7.1 billion.

The bank set aside P4.2 billion for provision for credit losses in 2019, an increase from P714 million in 2018, driven by the rapid growth in retail loans and provisions for select commercial sectors.

Pre-provision operating profit was P16.6 billion, up 41 percent from a year ago.

Net profit in the fourth quarter climbed 16 percent year on year to P2.4 billion.

Total revenues rose 43 percent year-on-year to P9.8 billion, driven by core income. Net interest income from customer loans and deposits/peso bond issuance increased 50 percent to P6.6 billion. This drove total net interest income to grow 44 percent to P8 billion.

However, the fourth-quarter net income was 12 percent lower compared to a quarter ago due to higher provisions for credit losses of P2.4 billion in the period versus P1.1 billion in third quarter 2019, driven by the growth in retail loans and provisions for select commercial sectors.

Security Bank remains among the country’s best capitalized private domestic universal banks. Common Equity Tier 1 ratio was at 16.9 percent versus 17.1 percent a quarter ago and 16.4 percent a year ago.

Total capital adequacy ratio stood at 17.9 percent versus 18 percent a quarter ago and 18.7 percent a year ago.

Security Bank paid cash dividends of P1.50 per common share on Nov. 28, 2019, representing regular semestral cash dividend of P1.00 per share and a special cash dividend of P0.50 per share.

Topics: Security Bank Corp. , net income
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