Security Bank’s income up 43%

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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.

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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.

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