Security Bank Corp. on Wednesday reported a 53 percent increase in net income to P10.6 billion in 2022 from the previous year’s P6.91 billion, driven by growth in core business, lower credit provisions and normalized income tax provisions.
Total revenues grew 8 percent to P39.6 billion from P36.81 billion, while net interest income increased 7 percent to P29.2 billion.
Net interest margin averaged 4.23 percent, lower compared to 4.43 percent in 2021. Total non-interest income increased 11 percent to P10.4 billion.
“We are encouraged by the underlying growth of the economy as it reopens and rebuilds. Our strong performance for 2022 reflects the fact that Security Bank is fully engaged to support our retail, wholesale and SME clients. We will sustain that intensity for 2023 as we help clients navigate the current inflationary environment and geopolitical uncertainties,” Security Bank president and CEO Sanjiv Vohra said.
In the fourth quarter of 2022, net income totaled P2 billion, down from the previous year’s P2.1 billion. Fourth-quarter revenues increased 9 percent year-on-year to P10.2 billion, boosted by non-interest income which grew 26 percent due to foreign exchange income, assets sales, and recovery on charged-off assets. Pre-provision operating profit for the period hit P3.9 billion, up 2 percent year-on-year.
The bank set aside P1.2 billion as provisions for credit and impairment losses in the fourth quarter, bringing the figure to P2.8 billion for the whole year.
Low-cost savings and demand deposits grew 10 percent and accounted for 58 percent of total deposits.
Time deposits grew 34 percent, while total deposits grew 16 percent to P606 billion.
Net loans increased 12 percent to P503 billion, driven by both wholesale loans which grew 10 percent and retail loans which accelerated to 16 percent traced to home loans, which grew 21 percent, and credit cards, which rose 34 percent.
Security Bank remains among the country’s best capitalized private domestic universal banks with common equity Tier 1 ratio of 16.1 percent and capital adequacy ratio of 16.6 percent.
