Security Bank Corp. said Friday it posted a net profit of P2.4 billion in the first quarter, driven by growth in core businesses.
The bank said that on a sequential quarter-on-quarter basis, net profit increased 18 percent. Net interest margin improved to 4.06 percent, up by 14 basis points from the previous quarter.
Net interest income also increased 3-percent quarter-on-quarter.
Security Bank said revenues grew 6 percent year-on-year to P9.8 billion. Net interest income increased 7 percent to P7.5 billion, while non-interest income rose 2 percent to P2.3 billion, driven by service charges, fees and commissions.
Operating expenses went up 12 percent from the level a year ago, on investments in manpower and technology. Pre-provision operating profit was P3.7 billion.
The bank allocated P616 million as provisions for credit losses in the first quarter. Gross non-performing loan ratio was at 3.12 percent, down from 3.65 percent a year earlier.
Gross non-performing loans went down from the previous quarter by 1 percent. NPL reserve cover was at 99 percent, up from 90 percent a year ago.
Return on shareholders’ equity was 7.42 percent, while return on assets was 1.15 percent in the quarter.
Security Bank said total deposits reached P525 billion. Low-cost savings and demand deposits as percent of total deposit increased to 62 percent in the first quarter from 58 percent in the previous quarter.
The bank shed high-cost deposits, resulting in time deposits decreasing 3 percent year-on-year and 28 percent quarter-on-quarter.
Net loans went up 5 percent year-on-year to P489 billion, led by retail loans which grew 18 percent and wholesale loans which went up 1 percent.
Home loans climbed 18 percent and credit cards increased 36 percent year-on-year. Retail loans represented 26 percent of total loans in the first quarter, up from 23 percent a year ago.
The bank said it continues to have healthy liquidity, with liquidity coverage ratio of 167 percent and net stable funding ratio of 127 percent as of end-March 2023.
Common equity tier 1 ratio increased to 16.7 percent from 16.1 percent in the previous quarter. Total capital adequacy ratio improved to 17.0 percent from 16.6 percent.
Total assets grew 12 percent year-on-year to P794 billion, with shareholders’ capital increasing 5 percent to P128.7 billion.