Security Bank Corp. posted a 43 percent increase in net income to P7.2 billion in 2014 from P5 billion in 2013. Return on equity improved 16.3 percent.
The bank’s core revenues– comprised of net interest income, fee-based income, and trading gains attributable to customer flows–grew by 26 percent to P13.6 billion.
Fee-based income was P1.7 billion, 8 percent higher than the previous year’s level, while overall trading gains reached P3.6 billion.
Deposits climbed 20 percent year-on-year to P247 billion as loans also gained 17 percent to P194 billion.
These resulted in a 14 percent increase in the bank’s total assets to P397 billion by the end of 2014.
Shareholders’ capital posted an increment of 15 percent to P47 billion, while the loan-to-deposit ratio stood at 78 percent.
The bank said its asset quality remained firm and healthy with the net non-performing loans (NPL) ratio at 0.28 percent, which is among the lowest in the Philippine banking industry. Its NPL reserve cover stood at 200 percent as of end-December 31—also among the highest in the industry.
Security Bank also noted that despite the challenges of margin compression, its net interest income grew by 33 percent year-on-year to P11.2 billion, while net interest margin (NIM) was 3.4 percent.
The bank’s total operating income increased by 36 percent year-on-year to P16.8 billion.
Operating expense growth (excluding provision for probable credit losses and impairments) was 17 percent due to investments in people, branches, re-branding and retail bank transformation, while the cost-to-income ratio was 47 percent.