Security Bank Corporation posted net profit of P2.4 billion in Q1-2023,driven by growth in core businesses.
On a sequential quarter-on-quarter basis, net profit increased 18 percent. Net interest margin increased to 4.06 percent, up by 14 basis points versus previous quarter. Net interest income likewise increased 3 percent quarter-on-quarter.
On a year-on-year basis, total revenues grew 6 percent to P9.8 billion. Net interest income increased 7 percent to P7.5 billion. Total non-interest income was at P2.3 billion, up 2 percent year-on-year. Non-interest income was driven by service charges, fees and commissions, which was up 2 percent year-on-year.
Operating expense was 12 percent higher versus year-ago level, driven by investments in manpower and technology.
Pre-provision operating profit was P3.7 billion. The Bank set aside P616million as provisions for credit losses in Q1-2023. Gross non-performing loan ratio was at 3.12 percent, down from 3.65 percent a year ago. Gross non-performing loans were also lower versus previous quarter by 1 percent. NPL reserve cover was at 99 percent, up from 90 percent a year ago.
Return on shareholders’ equity was 7.42 percent. Return on assets was 1.15 percent.
Total deposits stood at P525 billion. Low-cost savings and demand deposits as percent of total deposit increased to 62 percent, up from 58 percent in previous quarter. The Bank shed high-cost deposits, resulting in time deposits decreasing 3 percent year-on-year and 28 percent quarter-on-quarter.
Net loans increased 5 percent year-on-year to P489 billion, driven by retail loans which grew 18 percent and wholesale loans which was up 1 percent. Home loans grew 18 percent and credit cards increased 36 percent year-on-year. Retail loans are 26 percent of total loans, up from 23 percent a year ago.
