Security Bank Corporation has reported net profit of P2.4 billion in the first quarter this year, driven by growth in core businesses.
On a sequential quarter-on-quarter basis, net profit increased 18 percent. Net interest margin increased to 4.06 percent, up by 14 basis points versus previous quarter. Net interest income likewise increased 3 percent quarter-on-quarter.
On a year-on-year basis, total revenues grew 6 percent to P9.8 billion. Net interest income increased 7 percent to P7.5 billion. Non-interest income total P2.3 billion, up 2 percent year-on-year.
Operating expense was 12 percent higher versus year-ago level, driven by investments in manpower and technology.
Pre-provision operating profit was P3.7 billion. The bank set aside P616 million as provisions for credit losses for the period. 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. Return on assets was 1.15 percent.
Total deposits stood at P525 billion. Low-cost savings and demand deposits as percent of total deposit increased to 62 percent, up from 58 percent in previous quarter. The bank shed high-cost deposits, resulting in time deposits decreasing 3 percent year-on-year and 28 percent quarter-on-quarter.
Net loans increased 5 percent year-on-year to P489 billion, driven by retail loans which grew 18 percent and wholesale loans which was up 1 percent. Home loans grew 18 percent and credit cards increased 36 percent year-on-year. Retail loans are 26 percent of total loans, up from 23 percent a year ago.
On a sequential quarter-on-quarter basis, net loans decreased by 3 percent. Retail loans increased 4 percent while wholesale loans decreased 5 percent over the quarter.
The bank continues to have healthy liquidity, with liquidity coverage ratio (LCR) of 167 percent and net stable funding ratio (NSFR) of 127 percent as of 31 March 2023.
Common equity Tier 1 ratio increased to 16.7 percent, up from 16.1 percent in the previous quarter. Total capital adequacy ratio (CAR) increased to 17 percent, up from 16.6 percent in the previous quarter. Total assets increased to P794 billion, up 12 percent year-on-year. Shareholders’ capital likewise increased to P128.7 billion, up 5 percent year-on-year.
On March 28, 2023, Security Bank approved cash dividend declaration of P1.50 per common share representing regular semestral cash dividend, with payment date on 28 April 2023.
