Security Bank posts lower year-on-year Q1 net income in March ‘17

Security Bank Corp. (Security Bank) posted a Php 2.8 billion net income in the first quarter of 2017, lower than the Php 3 billion year ago. (Photo: Security Bank/Facebook)

MANILA—Security Bank Corp. (Security Bank) posted a Php 2.8 billion net income in the first quarter of 2017, lower than the Php 3 billion year ago.

In a disclosure with the Philippine Stock Exchange (PSE) Tuesday, Security Bank said the net interest income during the same period, however, rose 27 percent to Php 4.4 billion from year-ago’s Php 3.5 billion.

The rise was partly due to the 28 percent rise of loan portfolio to Php 305 billion, while non-performing loans (NPL) ratio went down to 0.14 percent from 0.29 percent same period in 2016.

Of the total, consumer loans went up 51 percent while wholesale loans ticked-up 26 percent.

Deposits increased by 34 percent to Php 379 billion, with low-cost savings and current accounts rising by 19 percent.

Security Bank president and CEO Alfonso L. Salcedo Jr. cited the rise in the bank’s loans and deposit segments, which he said were the main factors for the rise in net interest income.

”The bank has been able to manage the cost-to-income ratio in the midst of heavy investments in branch network, information technology and people. These are investments for the future which will allow us to up the business,” he said.

In the first quarter this year, the bank registered a cost-to-income ratio of 47 percent, amid the 18 percent rise of operating expense less provisions for possible credit losses and impairments.