Security Bank Corp. said Friday it posted a net profit of P4.8 billion in the first nine months. Profit before tax was P7.6 billion, up 103 percent from the same period last year.
Net interest income reached P20.5 billion, down 12 percent from a year ago. Total non-interest income amounted to P7.0 billion, down 59 percent in 2020 which benefitted from extraordinary securities trading gains.
Service charges, fees and commissions increased 24 percent to P3.2 billion, with fee income sources increasing from their year-ago levels. Other non-interest income excluding securities trading gains grew 45 percent to P2.7 billion.
Operating expense was up by 2 percent from the same period last year, driven by investments in technology and manpower to improve customer experience. The cost-to-income ratio was 57.3 percent.
Pre-provision operating profit amounted to P11.7 billion. The bank allocated P4.1 billion as provisions for credit losses in the first nine months, a significant decrease from P21.1 billion a year earlier.
Gross non-performing loan ratio was 4.15 percent. NPL reserve cover was 91 percent. Return on shareholders’ equity reached 5.20 percent.
Security Bank said from July to September, net income hit P1.7 billion, up 16 percent from the second quarter. On a sequential quarter-on-quarter basis, net interest income amounted to P6.9 billion, consistent with previous quarter.
Low-cost savings and demand deposits increased 17 percent from year-ago level, and accounted for 58 percent of total deposits. High-cost deposits increased 24 percent, while total deposits grew 20 percent to P522 billion.
Gross loans amounted to P449 billion, down 1 percent from year-ago level.
“We are optimistic on the improvements in the economic and health data over the past few weeks and the subsequent steps taken to open the economy. The bank is well positioned to support our clients as they recover from the pandemic impact,” said Security Bank president and chief executive Sanjiv Vohra.