Security Bank Corporation reported a 12 percent annual increase in net profit for the first nine months of 2024, posting P8.5 billion compared to P7.6 billion in the same period last year. The strong performance was driven by accelerating revenue growth, with total revenues reaching P40.0 billion, up 28 percent year-on-year—an improvement over the 24 percent revenue growth posted in the first half of the year.
The increase in revenue was fueled by robust growth in both net interest income and non-interest income. Net interest income surged 31 percent to P32.4 billion, with the bank maintaining a solid net interest margin of 4.90 percent. Non-interest income rose 18 percent to P7.6 billion, bolstered by a 55 percent jump in service charges, fees, and commissions, which reached P6.7 billion.
“We are pleased with our third-quarter results. The combination of our client engagement, significant investments in our team and our technology has accelerated the bank’s growth. We are excited about delivering on our Better Banking promise,” said Sanjiv Vohra, president and CEO of Security Bank.
Security Bank’s pre-provision operating profit for 9M-2024 climbed 34 percent year-on-year to P16.5 billion, reflecting the strength of its core operations. However, the bank increased provisions for credit losses to P5.1 billion, up from P2.6 billion in the prior year, reflecting cautious optimism amid economic uncertainties. As of 30 September 2024, the gross non-performing loan (NPL) ratio stood at 3.08 percent, with an NPL reserve cover of 79.5 percent.
Despite rising operating expenses—up 24 percent due to investments in manpower and technology—the bank’s cost-to-income ratio improved to 58.8 percent, from 60.7 percent a year earlier.
For Q3-2024, Security Bank posted a net profit of P3.0 billion, up 14 percent from the same period in 2023 and 7 percent higher than the previous quarter. Total revenue for the quarter increased to P14.4 billion, up 36 percent year-on-year and 9 percent quarter-on-quarter. The bank’s net interest income in Q3 reached P10.7 billion, up 19 percent from the previous year, while non-interest income surged 129 percent to P3.6 billion, driven by securities trading gains and higher service charges.
Total deposits grew 28 percent year-on-year to P720 billion, with core deposits (CASA) accounting for 53 percent of total deposits. Loans also grew at a brisk pace, with net loans expanding 24 percent year-on-year to P623 billion, up 8 percent from the previous quarter. Retail and MSME loans were particularly strong, increasing 38 percent year-on-year, driven by growth in home loans, credit cards, auto loans, and MSME lending.
The bank’s capital ratios remained robust, with a Common Equity Tier 1 (CET1) ratio of 13.3 percent and a total capital adequacy ratio (CAR) of 14.2 percent. Total assets rose to P1.0 trillion, an increase of 26 percent year-on-year, while shareholders’ equity grew 8 percent to P143 billion.
Security Bank also maintained a strong liquidity position, with a liquidity coverage ratio (LCR) of 186% and a net stable funding ratio (NSFR) of 135 percent, ensuring its ability to meet short-term and long-term funding requirements.
On 29 October 2024, the bank’s board of directors declared a second-semester regular cash dividend of P1.50 per share, bringing the total dividend for the year to P3.00 per share.
With strong fundamentals, a growing customer base, and continued investment in technology, Security Bank remains optimistic about sustaining its growth trajectory. As part of its strategic transformation, the bank is focused on improving customer engagement and operational efficiency, positioning itself for long-term success in the competitive Philippine banking sector.
