The Market Monitor Minding the Nation's Business
By Riza Lozada
Security Bank Corp. (SECB) posted P2.8 billion in net income in the first quarter as net interest income increased 27 percent to P4.4 billion from P3.5 billion a year ago offseting the decrease in the bank’s non-interest income.
Non-interest income including securities trading gains was down to P1.8 billion from P2.4 billion a year ago.
Total loans grew 28 percent year-on-year to P305 billion. Wholesale loans increased 26 percent while consumer loans grew 51 percent.
Net interest margin was maintained at 3.1 percent.
The bank’s asset quality remained healthy, with non-performing loan (NPL) ratio at 0.14 percent from 0.29 percent a year ago.
NPL reserve cover remained high at 197 percent versus 171 percent a year ago. Deposits increased 34 percent to P379 billion. Low-cost deposits grew 19 percent.
The bank’s total assets reached P729 billion last year, up 41 percent.
The cost-to-income ratio remained at an efficient 47 percent.
Operating expense growth rate, excluding provisions for probable credit losses and impairments, was 18 percent.
Security Bank President and Chief Executive Officer Alfonso Salcedo Jr. said the bank’s loan and deposit growth has sustained net interest income growth.
“The bank has been able to manage the cost-to-income ratio in the midst of heavy investments in branch network, information technology and people. These are investments for the future which will allow us to scale up the business,” he added.
SECB successfully upgraded its core banking system as part of its technology transformation program.
The new system, used by leading financial institutions globally, will enable SECB to roll out new products and services much faster.
Shareholders’ capital stood at P99.7 billion, a 78 percent increase from a year ago. Return on shareholders’ equity was 11.4 percent in the first quarter. Common Equity Tier 1 ratio was 17.5 percent and total Capital Adequacy Ratio was 19.9 percent.
SECB’s board also approved last April 25, cash dividends of P1.50 per share representing regular semestral cash dividend of P1 per share and a special cash dividend of 50 centavos per share, with record date on May 11 and payable on May 25 this year.