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Security Bank posts hefty profit

Security Bank Corp., the fifth-largest lender in terms of assets, meanwhile, registered a net profit of P7.4 billion in the nine-month period, up 12 percent on year, on the back of double-digit growth in core businesses.

Security Bank attributed the strong financial results to “a 24-percent or P2.8-billion increase in net interest income to P14.3 billion.” 

“Non-interest income including trading gains was P3.5 billion, a 15 percent or P0.6-billion decrease,” the bank said in a statement.

Security bank’s net income in the third quarter increased 21 percent to P2.14 billion year-on-year, driven by a 22-percent growth in net interest income to P5 billion.

The growth in net interest income was on the back of a 38-percent year-on-year increase in loans to  P370 billion and a 44-percent increase in deposits to P431 billion. Low-cost deposits grew 22 percent.

Wholesale loans rose 36 percent, with corporate loan growth recorded at 39 percent and that of middle market at 32 percent.

Consumer loans, accounting for 14 percent of the bank total loan portfolio. increased 67 percent.

Net interest margin stood at 3.2 percent in the third quarter of 2017, same as in previous quarter and higher than 3.1 percent at year-end 2016. Service charges, fees and commissions were up 2 percent to P1.6 billion.

Operating expenses, excluding provisions for credit and impairment losses, rose 17 percent, driven by a 22-percent increase in manpower cost with the staffing of new branches, retail lending and e-commerce platforms.

Security Bank opened 19 new branches in the last 12 months from October 2016 to September 2017, inclusive of the eight new branches launched in the first nine months this year.

Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, meanwhile, booked an unaudited consolidated net income of P13.2 billion in the first nine months of 2017, up 5 percent year-on-year, on higher loans and deposits.

Metrobank, in a a disclosure to the stock exchange, attributed the increased income to its core banking business as it sustained the momentum in its loan expansion and low-cost deposits growth.

Fee income drivers continued to improve and operating expenses were again capped at a single-digit growth rate.

“We are pleased to report that our core earnings results are moving ahead of plans,” Metrobank president Fabian Dee said in a statement.

“And we are also continuously improving our operations and have made the necessary enhancements to our internal processes to ensure that we become an even stronger institution. We would like to thank our customers for their support as we move forward and continue to deliver premium customer experience to them,” Dee said.

“This result was driven by a 24-percent or P2.8-billion increase in net interest income to P14.3 billion. Non-interest income including trading gains was P3.5 billion, a 15 percent or P0.6-billion decrease,” the bank said in a statement.

 

Topics: Security Bank Corp , Profit
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