Security Bank Records P8.6b Net Income

SECURITY Bank Corp. posted a 77 percent year-on-year increase in net income to P8.6 billion in the first nine months of 2022, driven by growth in core businesses, lower credit provisions and normalized income tax provisions. Total revenues grew seven percent to P29.4 billion year-on-year. Net interest income increased seven percent to P22 billion. Net interest margin in the first nine months was 4.33 percent. Total non-interest income increased six percent to P7.4 billion. Service charges, fees and commissions grew 22 percent to P3.9 billion, led by increase in fees from credit cards, deposits and capital markets. Other non-interest income excluding securities trading gains and fee income rose 32 percent to P3.6 billion, driven mainly by foreign exchange income and recovery on charged-off assets. Operating expense was five percent higher, driven by investments in manpower and technology to improve customer experience. Cost-to-income ratio was 56.3 percent compared to 57.3 percent a year ago. Pre-provision operating profit was P12.8 billion, up nine percent year-on-year. The bank set aside P1.6 billion as provisions for credit losses in the first nine months of 2022, a 60 percent decrease versus year-ago level of P4.1 billion. Gross non-performing loan ratio decreased to 3.24 percent from 4.15 percent in previous year. Non-performing loan reserve cover increased to 94 percent from 91 percent in previous year. (PR)