Robust growth in loans hikes Security Bank profit to P5.2B

Strong loans growth boosted Security Bank Corp.’s (SBC) net income in the first half to P5.2 billion from P4.9 billion a year ago. 

The listed bank reported to the Philippine Stock Exchange (PSE) that net interest income rose by 26 percent to P9.3 billion in the first six months as a result of a 27 percent rise in loan portfolio to P340 billion.

Of the total, wholesale loans went up by 25 percent, wherein corporate loans rose by 23 percent and middle market loans by 27 percent.

Consumer loans posted a higher jump of 49 percent during the period.

Deposits grew by 26 percent during the same period to P380 billion, with low-cost savings and current accounts (CASA) rising by 21 percent.

Operating expense, which exclude provisioning, during the six-month period increased by 16 percent due to 23 percent rise of manpower cost in line with the opening of new branches, and the retail lending and e-commerce platforms.

The bank opened 25 new branches since June 2016. To date, the bank has a network of 296 branches and 667 automated teller machines (ATMs) nationwide.

As of end-June this year, the bank’s asset totaled to P775 billion, up 26 percent year-on-year, common equity Tier 1 ratio is at 16.6 percent and capital adequacy ratio (CAR), which is a gauge of a bank’s financial health, is 19 percent. RIZA LOZADA