Security Bank Corp., the sixth-largest lender, said Wednesday net income in the first nine months climbed 9 percent to P6.6 billion from a year ago, led by strong net interest profit this year.
Security Bank said in a statement it posted a net interest income of P11.5 billion in January to September, on the back of a 24-percent loan growth.
“We are pleased with the consistency of our results. The continuing growth in our net interest income has been making up for lower trading gains,” Security Bank president and chief executive Alfonso Salcedo Jr. said.
“Our consumer loan portfolio has further picked up pace while low-cost deposits are growing at a healthy rate. Our financial results over the last several quarters reflect our single-minded focus on executing our strategy which is to grow our retail banking business into a strong third pillar complementing our wholesale banking and financial markets businesses, aimed at generating a more stable and sustainable income,” Salcedo said.
Security Bank’s net income grew 26 percent in the third quarter to P1.8 billion, driven by a 27-percent increase in net interest income to P4.1 billion.
Total deposits grew 9 percent, while low-cost deposits increased 21 percent. High-cost deposits were flat year-on-year as the bank used the P37-billion capital investment received from The Bank of Tokyo Mitsubishi UFJ, Ltd. in April 2016.
Corporate and commercial loans increased 20 percent year-on-year. Key consumer loan portfolios composed of home and auto loans and credit card receivables posted a 74-percent growth.
Consumer loans accounted for 13 percent of the bank’s total loan portfolio, up from 10 percent a year ago.
Net interest margin in the nine-month period was 3.1 percent. Non-interest income was P4.1 billion, of which service charges, fees and commissions amounted to P1.6 billion.
Operating expense growth, excluding provisions for probable credit losses and impairments, was 12 percent. The cost-to-income ratio stood at 49 percent.
The bank said it was making major investments in information technology, people and branches. Security Bank currently has 280 branches and 598 automated teller machines nationwide, having added 18 new branches this year.
Security Bank provided P664 million in allowance for probable credit losses in the nine-month period. Asset quality remained healthy with net non-performing loan ratio at 0.33 percent. NPL reserve cover was at 169 percent.
