Listed Security Bank Corp. saw profits rise by 12 percent during the first nine months of the year on the back of higher net interest income.
Security Bank said its net income rose to P7.4 billion during the period from P6.6 billion a year earlier.
“This result was driven by a 24 percent or P2.8-billion increase in net interest income to P 14.3 billion. Non-interest income including trading gains was Php 3.5 billion, a 15 percent or P600-million decrease,” the company said in a disclosure to Philippine Stock Exchange on Monday.
For the third quarter alone, the bank booked profit of P2.14 billion, up 21 percent from the comparable 2016 period.
This was driven by a 22-percent growth in net interest income to P5 billion.
For end-September 2017, growth in net interest income followed a 38-percent year-on-year increase in loans to P370 billion and a 44-percent increase in deposits to P431 billion.
Low-cost deposits grew by 22 percent. Wholesale loans grew by 36 percent, where corporate loan growth hit 39 percent and middle market loan growth was 32 percent.
Consumer loans also increased by 67 percent and accounted for 14 percent of total loans.
Net interest margin was 3.2 percent in the third quarter of 2017, same as in previous quarter and higher than the 3.1 percent at the end of 2016. Service charges, fees and commissions were up 2 percent to P1.6 billion.
Operating expenses, which exclude provisions for credit and impairment losses, were up 17 percent, driven by a 22-percent increase in manpower cost with the staffing of new branches, retail lending and e-commerce platforms.
The company said 19 new branches were opened in the last 12 months from October 2016 to September 2017, inclusive of the eight new branches opened in the first nine months of this year.
“Depreciation and amortization and software costs increased 40 percent due to the major information technology upgrade and branch network expansion. The cost-to-income ratio was 50.6 percent,” it said.
The company’s asset quality remained firm with a net non-performing loan ratio (NPL) of 0.11 percent.
Security Bank’s total assets increased 17 percent to P796 billion.