Security Bank Corp., the 10th largest lender in the Philippines, said Thursday its income declined to P9.1 billion last year from P10.6 billion in 2022, with gains from interest earnings offset by a sharp increase in provisions for credit and impairment losses and decline in fee-based and other income.
Total revenue grew 8 percent year-on-year to P43 billion, with net interest income rising 19 percent to P34.7 billion. Net interest margin rose to 4.49 percent last year from 4.23 percent in 2022.
Fee-based and other income dropped to P8.2 billion from P10.4 billion in the previous year.
Service charges, fees and commissions grew 15 percent to P6.1 billion, led by an increase in fees from credit cards, remittances and bancassurance. Operating expense was up 14 percent due to investments in manpower and technology.
Security Bank set aside P4.8 billion as provision for credit and impairment losses in 2023, a 69 percent jump from P2.8 billion given impacts from provisions releases in 2022 and elevated costs for credit cards in 2023.
In the fourth quarter alone, the lender posted a net income of P1.5 billion as revenue increased 15 percent to P11.8 billion.
