Security Bank 2015 net income at record P7.7B

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SECURITY Bank Corp. (SBC) said its net income rose 7 percent last year to a record P7.7 billion, propelled by higher loans and deposits during the period.

In a disclosure to the Philippine Stock Exchange on Wednesday, the lender said the income growth in 2015 translated to a 15.2 percent return on shareholders equity.

The bank posted net income of P7.2 billion in 2014.

Security Bank said profit growth was mainly attributable to its lending business, which grew by 24 percent to P240 billion from the previous year’s P194 billion, with corporate or commercial loans increasing by 21 percent.


SBC noted that its key consumer loan portfolios—consisting of home and auto loans and credit card receivables—grew by 67 percent last year.

The 2015 results “exceeded our expectations. Customer loans grew at rates significantly above industry with no deterioration in the net NPL [non-performing loans] ratio,” said Alfonso Salcedo Jr., president and chief executive officer of the bank.

“Likewise, deposits outpaced industry growth. Core revenues are growing robustly, with the increase progressively making up for lower trading gains,” Salcedo added.

He said SBC’s three core businesses—wholesale banking, retail banking, and financial markets/treasury—all contributed to produce record net profits in 2015.

Despite the steep increase in loans, Security Bank’s asset quality remained healthy, with a net non-performing loan (NPL) ratio of 0.14 percent, lower than the 0.28 percent recorded in 2014. NPL coverage stood at 205 percent, which is among the highest in the industry.

The bank ended 2015 with total resources of P532 billion, a 34 percent year-on-year increase. Deposits grew 17 percent to P290 billion from P247 billion the year before.

Joselito Mape, Security Bank’s chief financial officer, said that capital attributable to equity holders grew by 14 percent to P53.2 billion.

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