Security Bank Corp., the country’s 10th largest lender by assets, said Friday first-quarter net income stood at P2.4 billion, driven by growth in core businesses and higher by18 percent from the fourth quarter.
The first-quarter profit, however, was 11 percent lower than the P2.7 billion net income the lender reported in the year-earlier period.
Security Bank said net interest income rose 7 percent to P7.5 billion while fee-based income was up 2 percent to P2.35 billion.
Operating expense was 12 percent higher on account of investments in manpower and technology. Pre-provision operating profit was P3.7 billion. The bank set aside P616 million as provisions for credit losses in the first quarter.
Gross non-performing loan ratio was at 3.12 percent, down from 3.65 percent a year ago. Gross non-performing loans were also lower versus previous quarter by 1 percent. NPL reserve cover was at 99 percent, up from 90 percent a year ago.
Return on shareholders’ equity was 7.42 percent while return on assets was 1.15 percent.
“We are making significant investments in our team and our technology to support our clients and meet our medium-term goals by enhancing our data and technology infrastructure, strengthening cybersecurity, and tactically expanding our branch network. With the prudent growth in our core businesses in the first quarter of 2023, our balance sheet remains strong, anchored on our strong capital,” said Security Bank president and chief executive officer Sanjiv Vohra in a statement.
Total deposits stood at P525 billion while net loans increased 5 percent year-on-year to P489 billion.
