Security Bank Corp., the country’s fifth-largest lender in terms of assets, said Wednesday net income in 2016 grew 11 percent year-on-year to a record P8.55 billion, driven by the sustained strength of core businesses.
Security Bank said in a disclosure to the stock exchange net interest income increased 28 percent to P15.9 billion which more than offset the P1.1-billion decrease in trading gains.
Gains on sale of securities, however, went down to P1.8 billion in 2016 from P2.9 billion in 2015. Net interest margin was steady at 3.1 percent.
“We are pleased with the quality of our earnings. Our 2016 results show steady progress in our core recurring income. The growth in our net interest income more than offset the lower trading gains,” Security Bank president and chief executive Alfonso Salcedo Jr. said in a statement.
“Notably, the growth in our net interest income has accelerated to 30 percent year-on-year in the fourth quarter of 2016 from 28 percent in previous quarters. Our loans and deposits are growing robustly. Our asset quality and cost-to-income are in good shape. We continue to invest in growing the business,” Salcedo said.
The bank said in the fourth quarter 2016 alone, net income jumped 18 percent year-on-year to P1.9 billion, on the back of a 30-percent increase in net interest income to P4.4 billion.
Meanwhile, Bank of Tokyo-Mitsubishi UFJ Ltd., Japan’s largest bank and a shareholder in Security Bank, said it was highly optimistic of sustained growth in the Philippines as the Philippines emerged as one of its most important markets in Asia.
Takayoshi Futae, managing executive officer and chief executive of BTMU for Asia and Oceania, said in a news briefing in Makati the growth of the Philippine economy was “amazing.”
“The Philippine economy is one of the fastest-growing in the region. It is amazing, and we commit to support that growth through our strong partnership with Security Bank Corp.,” Futae said.
BTMU acquired a 20-percent stake in Security Bank in April 2016for P37 billion, the largest investment by a foreign financial institution in the Philippines.
“I am very happy and very bullish with our alliance with Security Bank. I believe in this country’s good potentials,” Futae said.
Tadahiro Miyamoto, MUFG general manager for Manila branch, said the partnership with Security Bank opened other doors for the global bank. “ We can now provide retail services which we have not done before in the Philippines,” Miyamoto said.
Futae said the collaboration with Security Bank was unique which could differentiate BTMU from other foreign banks.
BTMU is a member of Mitsubishi UFJ Financial Group Inc., one of the world’s leading financial groups with total assets of $2.4 trillion as of March 31, 2015.