The Market Monitor Minding the Nation's Business
Listed Security Bank Corp. posted a record-high profit of P7.7 billion last year, which was 7 percent higher than a year ago and translating to 15.2 percent return on equity (ROE) of shareholders.
Loans increased 24 percent year-on-year to P240 billion, while deposits grew 17 percent to P290 billion. Corporate and commercial loans increased 21 percent. Consumer loans composed of home and auto, as well as credit card receivables rose 67 percent.
Total assets jumped 34 percent year-on-year to P532 billion. Asset quality remained healthy with nonperforming loan (NPL) ratio at 0.14 percent, which is one of the lowest among local banks.
NPL reserves cover stood at 205 percent, which is also considered among the highest in the industry.Core revenues comprised of net interest income, fee-based income and trading gains attributable to customer flows grew 15 percent to P15.6 billion.
Net interest income increased by 11 percent to P12.4 billion. Net interest margin (NIM) was 3.3 percent. Total non-interest income was P6.5 billion, 16 percent higher compared to the previous year, which Security Bank attributed to a 38-percent increase in fee-based income with solid contribution from retail banking services such as bancassurance, credit cards and deposit transactions, as well as from asset management.
The bank earned P2 billion in gains on the sale of securities from P3.1 billion posted in 2014.
The cost-to-income ratio was 50 percent. Operating expense growth (excluding provisions for probable credit losses and impairments) was 20 percent, due to continuing investments in building the retail banking business and delivering Security Bank’s Better Banking promise to customers which delivered newest products the Security Bank Mastercard Complete Cashback credit card and the All-Access Account.
“2015 results exceeded our expectations. Customer loans grew at rates significantly above industry with no deterioration in the net NPL ratio. Likewise, deposits outpaced industry growth,” the bank said.
Strong growth in core revenues made up for lower trading gains. RIZA LOZADA