Security Bank Corporation posted net income of P9.1 billion in 2023. Total revenues grew 8 percent year-on-year to P43.0 billion.
Net interest income increased 19 percent to P34.7 billion while net interest margin for the full year was 4.49 percent, higher compared to 4.23 percent in 2022.
“The economy is adjusting to moderating levels of inflation and continued elevated interest rates. Our growth for 2023 in both loans and deposits was evident across our retail and SME segments. In turn, our wholesale teams successfully secured key mandates to support client growth initiatives. We will accelerate that growth in 2024 and continue to deliver on our Transformation goals,” Security Bank President and CEO Sanjiv Vohra said.
Total non-interest income was at P8.2 billion. Service charges, fees and commissions grew 15 percent to P6.1 billion, led by increase in fees from credit cards, remittances and bancassurance.
Operating expense was 14 percent higher, driven by investments in manpower and technology. Cost-to-income ratio was 60.8 percent, higher than the 57.8 percent in 2022.
Pre-provision operating profit was P16.9 billion, up 1 percent year-on-year. The bank set aside P4.8 billion as provisions for credit and impairment losses in 2023, a 69 percent increase versus year-ago level of P2.8 billion given impacts from provisions releases in 2022 and elevated costs for credit cards in 2023.
Gross non-performing loan ratio was 3.36 percent and NPL reserve cover was 82 percent.
Return on shareholders’ equity was 6.95 percent. Return on assets was 1.06 percent.
For the period October 1 to December 31, 2023, net income was P1.5 billion. Fourth quarter revenues increased to P11.8 billion, up 15 percent year-on-year and up 11 percent quarter-on-quarter.