Security Bank profit down 11.6% to P7.6B

SECURITY Bank Corp. announced Friday that net income in the first nine months of 2023 stood at P7.60 billion, down 11.6 percent from P8.60 billion a year.

Net interest income, however, rose by 12 percent to P24.70 billion from P22 billion, the bank noted.

“Our core client teams have maintained a strong focus on serving evolving client needs amid a volatile global backdrop during the third quarter,” Sanjiv Vohra, Security Bank president and chief executive officer, said in a statement.

Total noninterest income was said to have reached P6.50 billion while service charges, fees and commissions grew by 10 percent to P4.30 billion.

Operating expenses were 14 percent higher, driven by investments in manpower and technology.

The cost-to-income ratio rose to 60.7 percent compared to 56.3 percent a year ago, while pre-provision operating profit totaled P12.30 billion.

Security Bank said it had set aside P2.60 billion as provisions for credit losses, an increase from the year-ago level of P1.60 billion.

The gross nonperforming loan ratio was 3.15 percent and nonperforming loans stood at 92 percent.

Return on shareholders’ equity, meanwhile, was 7.81 percent, and the return on assets was 1.22 percent. The bank said its balance sheet remained strong as total deposits stood at P562 billion.

Low-cost savings and demand deposits as percentage of total deposit inched up to 59 percent from 58 percent.

Combined retail, micro, small and medium enterprises loans increased 22 percent while wholesale loans decreased 3 percent.

Total assets increased to P815 billion, up 2 percent while shareholders’ capital climbed to P132.60 billion, up by 7 percent,

Security Bank’s share price declined by 20 centavos to P74 on Friday.