Security Bank Corporation posted net profit of P2.6 billion in Q1-2024, reflecting growth in its Retail and MSME businesses.
On a year-on-year basis, net profit grew 11 percent. Total revenues increased 27 percent to P12.5 billion. Net interest income rose 44 percent over the year to P10.7 billion. Total non-interest income was at P1.8 billion. Service charges, fees and commissions increased136 percent year-on-year to P3.1 billion, boosted by the Bancassurance milestone fee.
Excluding extraordinary items on both revenue and expense, which offset each other, normalized net income would be largely unchanged.
On a sequential quarter-on-quarter basis, net profit rose 71 percent. Total revenues grew 6 percent. Net interest margin increased to 5.32 percent, up by 12 basis points versus quarter-ago level and up by 126 basis points versus year-ago level. Net interest income grew 7 percent over the quarter. Service charges, fees and commissions increased 76 percent quarter-on-quarter.
Given sustained investments in manpower and technology to accelerate transformation, operating expense was 24 percent higher versus year-ago level. Strong revenue performance led to a cost-to-income ratio of 60.7 percent, lower than the 62.6 percent a year ago.
Pre-provision operating profit was P4.9 billion, up 34 percent year-on-year. The bank set aside P1.5 billion as provisions for credit losses in Q1-2024, which is 30 percent lower than the quarter-ago provisions of P2.2 billion in Q4-2023. Gross non-performing loan ratio was 3.4 percent and NPL reserve cover was 81 percent.
