Security Bank Corp., the country’s sixth largest bank, said Wednesday net income in 2015 rose 7 percent year-on-year to a record P7.7 billion, on sustained growth of loans and deposits.
The bank said the 2015 profit translated into a 15.2-percent return on shareholders’ equity.
“2015 results exceeded our expectations. Customer loans grew at rates significantly above industry with no deterioration in the net NPL [non-performing loan] ratio. Likewise, deposits outpaced industry growth. Core revenues are growing robustly, with the increase progressively making up for lower trading gains,” Security Bank president and chief executive Alfonso Salcedo Jr. said in a statement.
“Our three core businesses—wholesale banking, retail banking and financial markets/treasury—all contributed to produce record net profits,” Salcedo said.
Loans increased 24 percent to P240 billion while deposits grew 17 percent to P290 billion.
Corporate and commercial loans increased 21 percent year-on-year. Key consumer loan portfolios composed of home and auto loans and credit card receivables rose 67 percent.
The bank said total assets jumped 34 percent to P532 billion as of end-2015.
It said asset quality remained healthy, with an NPL ratio of 0.14 percent, lower than 0.28 percent in 2014. Net NPL ratio of 0.14 percent remained among the lowest in the Philippine banking industry.
NPL reserve cover stood at 205 percent, among the highest in the industry.
Security Bank said net interest income increased 11 percent to P12.4 billion while net interest margin stood at 3.3 percent. Total non-interest income was P6.5 billion, or 16 percent higher than the previous year.
Security Bank had 262 branches and 555 automated teller machines nationwide as of end-2015. The bank said this was expected to increase in the next five years to around 500 to 600 branches after the acquisition by Bank of Tokyo-Mitsubishi UFG of a 20-percent stake in the bank.
BTMU, the largest bank in Japan, sealed an agreement with Security Bank on Jan. 14 for the acquisition of a 20-percent stake worth P37 billion ($782 million), making it the largest
investment by a foreign financial institution in the Philippines.
The capital infusion increased Security Bank’s shareholder capital from P52.4 billion as of September 2015 to P89.3 billion on a pro-forma post transaction basis.
BTMU, a member of Mitsubishi UFJ Financial Group Inc., is Japan’s largest bank, with a global network spanning more than 40 countries.