Security Bank nets P6.43 B in 9 months

Security Bank Corp. FILE PHOTO

MANILA, Philippines—Security Bank Corp. grew its nine-month net profit by 54 percent year-on-year to P6.43 billion, securing a rare slot among a few local banks expected to post higher full-year earnings this year compared to last year.

This translated to a return on equity of 20 percent, the bank told the Philippine Stock Exchange on Tuesday.

For the three-month period ended September, the bank earned P2.8 billion in net income, up by 13 percent year-on-year.

“All of our business segments sustained strong results in the third quarter. They continue to deliver healthy returns on our investment in branch network expansion in 2012-2013,” Security Bank president and chief executive officer Alberto Villarosa said in a press statement.

Net interest income increased by 37 percent year-on-year to P8.5 billion in the nine-month period. Net interest margin stood at 3.4 percent.

Core revenues – comprising net interest income, fee-based income, and trading gains attributable to customer flows – grew by 27 percent to P10.2 billion. Fee-based income inclusive of asset management was P1.2 billion while overall trading gain was P3.6 billion, the bank reported.

Reflecting growth in its core business, Security Bank expanded its loan book by 25 percent year-on-year to P181 billion while deposits likewise rose by 26 percent to P232 billion.

In the absence of extraordinary trading gains that jacked up most local bank’s earnings to record highs in 2013, many have posted slower earnings this year. In the third quarter, however, most banks have posted improvements in trading gains.

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