Security Bank Posts Php 3.1 Billion Net Income in H1-2021
Security Bank Corporation (PSE: SECB) posted net profit of Php 3.1 billion in the first half of 2021. Profit before tax was Php 5.5 billion, up 20% from the same period last year.
Net interest income was Php 13.6 billion, down 14% from year-ago level. Non-interest income was Php 4.8 billion, down 52% as 2020 was buoyed from extraordinary securities trading gains. Service charges, fees and commissions increased 28% to Php 2.1 billion, with fee income sources increasing from their year-ago levels.
Operating expense in H1-2021 was slightly up 0.9% from the same period last year, driven by investments in technology and manpower to improve customer experience. The cost-to-income ratio was 56.4%.
Pre-provision operating profit (PPOP) was Php 8.0 billion. The Bank set aside Php 2.4 billion as provisions for credit losses in H1-2021, a significant decrease versus Php 11 billion in H1-2020.
Gross non-performing loan ratio was 3.93%. NPL reserve cover was 103%.
Return on shareholders’ equity was 5.05%.
For the April 1 to June 30, 2021 period, net income was Php 1.5 billion. On a sequential quarter on-quarter basis, total revenues increased 9% to Php 9.6 billion. Net interest income grew 4% to Php 6.9 billion. Net interest margin in Q2-2021 was 4.29%, up 7 basis points quarter-on-quarter and down 35 basis points year-on-year. Non-interest income increased 23% to Php 2.6 billion.
Operating expense in Q2-2021 was higher by 4% versus quarter-ago.
Pre-provision operating profit in Q2-2021 was Php 4.3 billion, 15% higher than quarter-ago level. In Q2-2021, the Bank set aside Php 2 billion as provisions for credit losses.
Balance sheet remains strong
Low-cost savings and demand deposits increased 16% from year-ago level, and account for 55% of total deposits, up from 48% a year ago. High-cost deposits decreased 11%. Total deposits increased 2% to Php 522 billion.
Gross loans stood at Php 438 billion, down 4% from year-ago level. Gross retail loans decreased 12% year-on-year, and account for 26% of total loans, while wholesale loans decreased 1%.
Security Bank continues to be among the country’s best capitalized private domestic universal banks. Common Equity Tier 1 Ratio was 19.8%, up from 18.8% a year ago. Total Capital Adequacy Ratio was 20.4%, up from 19.7% a year ago. Total assets stood at Php 704 billion. Shareholders’ capital was at Php 124 billion, up 2% quarter-on-quarter.
Security Bank was recently awarded Philippines’ Best Bank by Euromoney, Best for HNWs (High Net Worth Clients) in the Philippines by Asiamoney, and Best Retail Bank in the Philippines by Alpha Southeast Asia. “Our second quarter results reflect continued quarter-on-quarter improvement from the fourth quarter of 2020 despite the challenging pandemic backdrop. Our team is grateful for the recognition of the Bank’s unrelenting commitment on delivering BetterBanking to address our clients’ needs.” — Security Bank President & CEO, Sanjiv Vohra.