Security Bank Corporation posted net profit of P1.6 billion in the first quarter of 2021. The passage of the CREATE law triggered a one-time P1.2 billion charge for deferred tax assets.
Profit before tax was P3.3 billion, up 42 percent from the same period last year.
Total net interest income was P6.6 billion, down 18 percent. Net interest margin in Q1-2021 was 4.39 percent, down29 basis points year-on-year.
Total non-interest income decreased 58 percent to P2.1 billion. Securities trading gains were P689 million, 80 percent lower than P3.5 billion a year ago. Service charges, fees and commissions were up 1 percent to P1.1 billion, with bancassurance, credit card, stockbrokerage and miscellaneous fees increasing from year-ago levels.
“Our team’s focus on clients remains steadfast. We are hopeful that progress on vaccination in the coming quarters will help the country resume its growth trajectory. We are fortunate that our strong capital equips the Bank to support clients directly through loans and indirectly through significant investments in both our team and our technology to improve customer experience,” Security Bank President & CEO, Sanjiv Vohra, said.
Operating expense decreased 3 percent from the same period last year. The cost-to-income ratio was 57.6 percent.
The bank set aside P402 million as provisions for credit losses, 93 percent lower than P5.7 billion in Q1-2020. Gross non-performing loan ratio decreased to 3.41 percent from 3.90 percent a quarter ago. NPL reserve cover was 118 percent, up from 115 percent a quarter ago.
Return on shareholders’ equity was 5.38 percent.
