Security Bank Corp. posted a 4% rise in first-half net income to P6.1 billion, as higher revenues and improved operating efficiency offset a sharp increase in provisions for credit losses.
Second-quarter profit rose 11% year-on-year and 25% from the previous quarter to P3.4 billion, showing stronger earnings momentum toward the end of the first half.
Revenues climbed 11% to P34.9 billion from P31.6 billion a year earlier, while pre-provision operating profit increased 21% to P15.4 billion.
Net interest income reached P32.4 billion, with net interest margin at 5.78%. Service charges, fees and commissions stood at P4.2 billion.
Operating expenses rose just 3%, helping bring the cost-to-income ratio down to 55.7% from 59.6% a year earlier.
“We grew revenues faster than expenses, improved efficiency, strengthened reserve cover, and maintained strong capital and liquidity,” Security Bank president and CEO Victor Lee said.
The lender set aside P7.6 billion for credit losses, up 49% from P5.1 billion a year earlier.
Despite the higher provisions, asset quality improved. The gross non-performing loan ratio declined to 3.04% from 3.16% a year earlier and 3.08% in the previous quarter, while NPL reserve cover increased to 85% from 79% a year ago.
Deposits stood at P891 billion, with current and savings account deposits growing 8% and accounting for more than half of the total.
Net loans edged up 1% to P675 billion as the bank rebalanced its portfolio toward higher-quality segments.
Security Bank’s common equity Tier 1 ratio improved to 12.6% from 12.3% a year earlier, while its capital adequacy ratio rose to 13.5% from 13.2%.
The bank had P1.19 trillion in assets at the end of June.
