Listed Security Bank Corp. reported on Wednesday that its net income for the first half of the year rose 29 percent from a year ago to P4.66 billion, driven by strong growth in its core businesses.
“This result was driven by healthy growth in the Bank’s core businesses, with loan growth of 20 percent year-on-year to P207 billion and deposit growth of 18 percent to P257 billion, which fuelled a 15 percent year-on-year increase in Security Bank’s total assets to P442 billion,” the bank said in filing posted on the Philippine Stock Exchange (PSE) website.
“Loan growth was broad-based, with corporate/commercial loans growing by 18 percent while consumer loans surged by 90 percent. The loan-to-deposit ratio was 81 percent. The return on assets [ROA] was 2.2 percent,” said the bank.
SBC said that interest income on loans increased by 17 percent year-on-year, which contributed to total interest income growth of 11 percent year-on-year.
On the other hand, non-interest income posted an increase of 69 percent to P4.4 billion, which included a strong trading gain of P2.1 billion.
The bank’s operating income rose by 22 percent year-on-year to P10.2 billion while operating expense grew to 28 percent. The sharp rise in operating expense was attributed to taxes incurred from the sale of securities in the first quarter of 2015, and marketing and advertising expenses in support of the bank’s retail banking strategy.
Security Bank president and CEO Alfonso Salcedo Jr. said that they are targeting to develop their retail banking business.
“We are focused on the execution of our strategy aimed at growing our retail banking business into a strong third pillar, complementing our strengths in wholesale banking and financial market businesses. Retail banking is a steady-growth, sustainable and higher-margin business which is less volatile than cyclical business,” said Salcedo.
For the second quarter of 2015, Security Bank posted a net income of P1.3 billion.
As of late June, Security Bank ranks as the eighth largest private domestic universal bank in the country with total assets amounting to P442 billion, a loan portfolio of P207 billion, and total capital of P52 billion.