Security Bank income rises 4 percent to P6 billion
Security Bank Corp. booked a four-percent increase in net income to P6.08 billion in the first half from P5.86 billion a year ago, as stronger net interest earnings and improved operating efficiency offset higher credit provisions and losses from foreign exchange and trading activities.
Security Bank's net income climbed 4% to P6.08 billion in the first half, buoyed by stronger net interest earnings and improved efficiency. The bank's net interest income surged 33.1% to P32.4 billion, driven by higher income and lower funding costs. Net interest margin expanded to 5.78% from 4.56% a year earlier, as interest income rose 5.2% to P39.8 billion.
Core pre-provision operating profit increased 21% to P15.4 billion, while total revenues grew 11% to P34.9 billion. Operating expenses grew at a slower 3%, reducing the cost-to-income ratio to 55.7% from 59.6%. However, gains from lending were offset by weaker non-interest income, with other income falling to P2.5 billion from P7.2 billion.
A P4.27 billion net foreign exchange loss and a P385 million trading and securities loss partially offset the positive trends. Despite higher credit provisions, asset quality improved, with the gross nonperforming loan ratio easing to 3.04% from 3.16%. Net loans ended June at P675 billion, up 1% year-on-year, while deposits totaled P891 billion, with low-cost current and savings accounts making up 52% of deposits.
Security Bank reported P1.19 trillion in assets and P155.7 billion in shareholders' capital, with its common equity tier 1 ratio at 12.6% and capital adequacy ratio at 13.5%. CEO Victor Lee expressed confidence in the bank's growth momentum.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
