MANILA, Philippines – Security Bank posted a net income of P2.9 billion in the 1st quarter of 2020, 21% higher than the same period last year on the back of sustained core income growth and securities trading gains.

Total revenues soared by 75% to P13.2 billion. Excluding trading gains, revenues grew 41% to P9.7 billion.

In light of the coronavirus pandemic, Security Bank ramped up its provisions for credit losses for the 1st quarter to P5.7 billion. This is more than the full-year 2019 buffer of P4.3 billion. (READ: Philippines braces for recession due to coronavirus)

“In view of the possible client impact of the pandemic, the bank has initiated portfolio reviews, reassessed its provisioning, and intensified client engagement during this period,” Security Bank said.

UnionBank and Bank of the Philippine Islands earlier reported higher loan loss provisioning. 

Security Bank stressed that its balance sheet remains strong, with total loans growing by 14% to P468 billion. Retail loans grew by 44% and accounted for 29% of total loans.

Total deposits grew by 9% to P503 billion.

The gross non-performing loan ratio, which measures the amount of bad loans compared to the bank’s total loan portfolio, stood at 1.59%. This is better than the banking industry’s 1.79% as of February 2020.

“We enter this period of challenge arising from the COVID-19 pandemic with a strong balance sheet and healthy liquidity and capital positions. We have the resources to serve our clients, protect our employees, and do our part to support our communities while maintaining the safety and soundness of the bank,” said Security Bank president and chief executive officer Sanjiv Vohra. – Rappler.com