• Security Bank net income falls, lower trading gains cited

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    Security Bank Corp. on Tuesday reported lower net income for the January to September period due to lower trading gains.

    In a statement, Security Bank said its nine-month income stood at P6.1 billion, down from the P6.4 billion recorded a year earlier.

    “Overall trading gain was P2.9 billion during the period,” the bank said, down from P3.6 billion.

    For the third quarter alone, the bank saw profits halved to P1.4 billion from P2.8 billion a year ago, also due to lower trading gains in the quarter.

    Still, Security Bank President and Chief Executive Alfonso L. Salcedo Jr. said he was positive that this year’s targets would be met.

    “We are on track versus our profit target for the year. Our core revenues are growing at a healthy rate and are poised to make up for lower trading gains when interest rates rise,” Salcedo said.

    “The net interest margin on our customer loans and deposits business has further improved, benefiting from the growth of our consumer and middlemarket loans and low-cost deposits,” he added.

    January to September net interest income went up 7 percent to P9 billion, loan books increased by 20 percent to P217 billion, and total deposits grew 19 percent to P275 billion.
    Non-interest fee-based income, meanwhile, surged by 48 percent to P1.8 billion.

    Core revenues — comprised of net interest income, fee-based income, and trading gains — climbed by 13 percent to P11.5 billion, while total operating income also increased by 6 percent to P14.3 billion.

    For the third quarter, Security Bank’s net interest income went up 22 percent to P3.2 billion from P2.8 billion, while non-interest income sank by 65 percent to P869 million from P2.5 billion.

    Asset quality continued to be healthy, the bank said, with its net non-performing loans (NPL) ratio at 0.31 percent as of end-September compared to 0.21 percent a year ago. NPL coverage was at 179 percent to date.

    To date, the bank has 260-branch network and 543 automated teller machines nationwide. It is one of the eight largest private domestic universal banks in the Philippines in terms of assets, reaching P482 billion as of end-September.

    Kristyn Nika M. Lazo

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