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April 12, 2024

Security Bank earnings dip amid rising costs, eyes growth in 2024

Security Bank Corporation of the Dy family reported a 13.7% drop in net income to P9.1 billion, impacted by rising expenses and higher provisions for credit card losses.

However, the bank saw an 8% increase in total revenues, reaching P43 billion, with net interest income climbing 19% to P34.7 billion.

A 14% rise in operating expenses was attributed to investments in both manpower and technology.

Last year, Security Bank allocated P4.8 billion for credit and impairment losses provisions, marking a 69% jump from the year before.

The bank reported a gross non-performing loan (NPL) ratio of 3.36%, an NPL reserve cover of 82%, a return on shareholders’ equity of 6.95%, and a return on assets of 1.06%.

Deposits reached P607 billion, with current account and savings account (CASA) deposits witnessing a 4% year-on-year growth.

Net loans rose to P538 billion, bolstered by significant advances in retail and MSME lending sectors.

Security Bank president and CEO Sanjiv Vohra remained optimistic about the bank’s growth trajectory into 2024, focusing on strategies to spur growth and achieve Transformation goals.