Security Bank net income rises by 21% to P2.14 billion in Q3 2017

Chris Schnabel
Security Bank net income rises by 21% to P2.14 billion in Q3 2017
The 3rd quarter result means Security Bank's net income for the first 9 months of the year is up 12% to P7.4 billion

MANILA, Philippines – Dy-led Security Bank Corporation (SECB) saw its bottom line jump by 21% in the 3rd quarter of the year, driven by gains in its net interest income.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, November 6, SECB reported a net income of P2.14 billion, thanks to a 22% growth in net interest income to P5 billion.

The 3rd quarter result means that SECB’s net income for the first 9 months of the year is up 12% to P7.4 billion.

The bank noted that growth in net interest income was propelled by a 38% year-on-year increase in loans to P370 billion and a 44% increase in deposits to P431 billion.

Low-cost deposits grew 22% while wholesale loans grew 36%, of which corporate loan growth was 39% and middle market loan growth was 32%.

Meanwhile, operating expenses, excluding provisions for credit and impairment losses, were up 17%. This was fueled by a 22% increase in manpower cost, which the bank attributed to staffing of new branches, retail lending, and e-commerce platforms.

SECB opened 19 new branches from October 2016 to September 2017, which include 8 branches opened in the first 9 months of this year. The bank has 298 branches and 694 automated teller machines (ATMs) to date.

Depreciation and amortization and software costs increased by 40% due to information technology upgrades and branch network expansion. The bank’s cost-to-income ratio stood at 50.6%.

SECB’s asset quality remained firm, with a net non-performing loan ratio (NPL) of 0.11% and NPL reserve cover at 220%.

The bank said its total assets increased 17% to P796 billion, while shareholders’ capital was up 8% to P103 billion. Return on average shareholders’ equity (ROE) was 9.8%, while return on average assets stood at 1.5%. – Rappler.com

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