Security Bank Corp., the seventh-largest lender in terms of assets, said Friday net income declined 13 percent in the first nine months to P6.7 billion from P7.7 billion in the same period last year, as it increased provisions for credit losses amid the global health crisis.
Security Bank said in a statement the net profit from January to September was driven by increases in net interest income and trading gains.
Total revenues climbed 66 percent to P40.2 billion from the same period last year. Excluding trading gains, total revenues grew 22 percent to P27.9 billion.
It said net interest income grew 24 percent to P23.4 billion from a year earlier. Securities trading gains reached P12.4 billion, up from P1.4 billion a year ago. Service charges, fees and commissions amounted to P2.6 billion, down by 10 percent.
The cost-to-income ratio improved to 38.4 percent from 53.3 percent a year earlier.
“While revenues, margins, and capital are resilient, the bank has maintained proactive credit provisioning given economic challenges arising from the pandemic. We are prudently supporting our clients, continuing vigilance in managing risks, and investing in initiatives to fortify our services,” Security Bank president and chief executive Sanjiv Vohra said.
Meanwhile, Philippine Savings Bank, the thrift-banking arm of the Metrobank Group, said it booked net income of P1.33 billion in the first nine months. Gross revenues improved 23.9 percent to P13.3 billion, while net interest income increased by 27.6 percent to P10.4 billion.
Operating income, inclusive of net service fees and commission income, went up 11.9 percent to P2.8 billion on the back of higher trading and securities gains.
PSBank said it had total assets of P214.7 billion as of end-September. Net non-performing loan ratio reached 4 percent with total loans and receivables at P150.4 billion.
The bank said that to cushion the potential impact of the pandemic, it boosted its loan provisioning to P5.3 billion or three times higher than the same period last year. Capital position remained strong at P34.9 billion with total capital adequacy ratio and common equity tier 1 ratio at 18.6 percent and 17.7 percent respectively.
“PSBank continues to take a conservative stance on credit provisioning amid the present business landscape while leveraging on operating efficiencies and focusing on our digital transformation roadmap. We are proud to be rated PRS Aaa (corp.) by PhilRatings which signifies a strong and continuous confidence in our institution even during this challenging times,” PSBank president Jose Vicente Alde said.