Security Bank Q1 net income doubles to P3.36B


Security Bank Corp reported on Thursday a first-quarter net income of P3.36 billion, which was 135 percent up from P1.43 billion for the same period last year.

It said in a statement its core revenues were realized from net interest income, fee-based income and trading gains attributable to customer flows, which grew 9 percent to P3.36 billion, resulting in a 28 percent return on shareholders’ equity.

Total operating income also increased by 77 percent to P6.3 billion for the first three months compared to the same period a year ago, the bank said.

“Our core businesses – financial markets, wholesale and retail banking – continued to produce healthy results after a robust 2014 performance,” bank Chairman Alberto Villarosa said.

“As we focus to deliver the best value to our customers and grow the retail bank as a third pillar to our business, we are greatly pleased to have Mr. Alfonso ’Yogi’ Salcedo, Jr. – with his depth and breadth of experience and vision in consumer banking – as
our new President and CEO,” he said.

The bank said net interest income inched up 4 percent to P2.9 billion from P2.8 billion last year on the back of strong loans and deposits.

It said loans grew by 20 percent to P199 billion, while deposits rose by 17 percent to P247 billion from a year ago.

Non-interest income grew three folds to P3.4 billion from P790 million a year ago due to a one-time extraordinary gain. Excluding the one time gain of P2.1 billion, non-interest income increased by 72 percent to P1.4 billion.

Fee-based income inclusive of asset management posted 20 percent growth to P482 million from the previous year.

The bank maintained a healthy asset management within the three month period as its net non-performing loan (NPL) ratio was at 0.08 percent, which is among the lowest in the banking industry. NPL reserve cover was at 198 percent, the highest in the industry

As of end-March, Security Bank’s total network ended at 257 branches and 516 automated teller machines, which included the integrated 39 branches of its thrift bank subsidiary Security Bank Savings.

Last year, it launched its BetterBanking re-branding initiatives in line with its transformation as a retail bank. It also launched operating lease business through SB Rental Corp., and bancassurance partnership with FWD Life.

“The bank’s balance sheet continues to be strong with sustained asset quality and capital strength. Our shareholders’ capital increased by 19 percent year-on-year to P50 billion as of March due to retained earnings,” Security Bank Chief Financial Officer Mr. Joselito E. Mape said.

“Our Basel 3 common equity tier 1 (CET 1) was 13.8 percent and total capital adequacy ratio (CAR) was 17.5 percent, well above the [central bank’s]minimum requirements of 8.5 percent and 10 percent, respectively,” he added.


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