SECURITY Bank Corp. saw its net income surge 57 percent in the first nine months of the year on solid core business growth.
In a statement, the listed commercial bank said its nine-month net profit rose to P6.49 billion from P4.2 billion last year. Return on equity advanced 20 percent, while return on assets grew 2.3 percent.
Core revenues – comprising of net interest income, fee-based income, and trading gain attributable to customer flows – rose 27 percent to P10.2 billion in nine months from P8 billion last year.
For the third quarter, the bank recorded a 13-percent net income increase to P2.8 billion from P2.5 billion a year ago.
“All of our business segments sustained strong results in the third quarter. They continue to deliver healthy returns on our investments in branch network expansion in 2012-2013,” said Alberto S. Villarosa, Security Bank president and chief executive officer.
From January to September, Security Bank grew its loan portfolio by 25 percent to P181 billion, while total deposits rose 26 percent to P232 billion on-year.
Total assets, on the other hand, increased 33 percent to P366 billion as of end-September.
Net interest income advanced 37 percent to P8.5 billion from 2013’s P6.2 billion, while non-interest income rose to P2.5 billion from last year’s P2.1 billion.
The bank’s NPL ratio in the first nine months was 0.21 percent from 0.16 percent a year ago, while the NPL reserve cover increased to 212 percent from 193 percent last year.
In the third quarter, the bank’s capital adequacy ratio increased 18.5 percent while the Basel III common equity tier 1 stood at 14.3 percent.
On October 7, the bank’s board of directors approved the integration of 39 branches of thrift bank subsidiary Security Bank Savings into parent Security Bank to streamline the retail bank’s focus and widen the product scope of these branches.
The board also approved the bancassurance agreement with FWD Life Insurance Corp. The two board approvals are still subject to regulatory approval.
FWD Life, the insurance arm of Pacific Century Group led by Hong Kong-based businessman Richard Li, is a high-growth technology driven insurance company focused on the Asian region.
As of end-September, Security Bank added 10 online branches, raising the count to 254 branches nationwide, with 468 automated teller machines.
Incorporated in 1951, Security Bank is a commercial bank primarily engaged in the financial market sector, corporate and investment banking, and commercial and retail banking.