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Security Bank posts P2.57-B net income

In second quarter

Updated

By James A. Loyola

Security Bank Corporation reported a 32 percent jump in net income to P2.57 billion in net income for the second quarter of the year as total revenues grew 32 percent to P7.9 billion.

In a disclosure, the bank said net interest income from customer loans and deposits sustained its strong trajectory growing by 44 percent to P5.4 billion, driven by the continued expansion of retail loans and low-cost deposits.

Retail loan growth accelerated to 54 percent year-on-year while low-cost deposits increased 11 percent. Retail loans now account for 25 percent of total loans versus 18 percent a year ago.

Total loans grew 11 percent year-on-year to P427 billion. Total deposits stood at P449 billion.

Net interest spread on loans and deposits increased to 5.36 percent in the second quarter of 2019, up 38 basis points quarter-on-quarter and 108 basis points year-on-year.

Total net interest income grew by 22 percent to P6.1 billion. Interest income from financial investments grew 7 percent.

Overall, net interest margin increased to 3.59 percent in the second quarter of 2019, up 18 basis points quarter-on-quarter and 42 basis points year-on-year.

Service charges, fees and commissions increased 70 percent to P1 billion. This was driven by loan fees, credit cards, deposit charges and bancassurance.

Securities trading gains in the second quarter of 2019 amounted to P376 million. Total non-interest income increased by 81 percent year-on-year to P1.7 billion.

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