SBC posts P1.43B income in Q1

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Tuesday, May 13, 2014

PROPELLED by a double-digit increase in net interest income brought about by expansion in loans and investment securities, the Security Bank Corp. (SBC) posted a net income of P1.43 billion in the first three months of the present year, representing a 17 percent growth as compared to the same period last year.

In a press statement, the bank reported its net interest income grew by 42 percent to P2.8 billion, anchored on the 39 percent year-on-year growth in its loan services while investment securities portfolio increased by 132 percent year-on-year and 57percent quarter-on-quarter.

The bank's net interest margin improved to 3.54percent in Q1-2014, up quarter-on-quarter from 3.33percent in Q4-2013 and slightly up from 3.49percent average in 2013.


Non-interest income contributed P790 million. Fees and commissions was at P361 million, up 11percent quarter-on-quarter. Trading gains was P320 million in Q1-2014.

Security Bank's total operating income increased by 17percent year-on-year while operating cost (excluding provisions for credit losses and impairments), grew by 4.1percent.

Pre-provision-and-impairment income was at P1.84 billion, representing 32percent year-on-year increase.

The bank made P133 million in credit provisions. The non-performing loan (NPL) ratio was at 0.06 percent in Q1-2014, down from 0.11 percent at year-end 2013, which is among the lowest in the banking industry. NPL reserve cover was at 198 percent in Q1-2014, up from 195 percent at year-end 2013, which is among the highest in the industry.

Security Bank's total resources increased by 46 percent year-on-year to P377 billion as of March 31, 2014.

The bank's return on shareholders' equity was at 13.8percent and the return on assets was at 1.6percent in Q1-2014.

Security Bank president and chief executive officer Mr. Alberto S. Villarosa said, "Our core businesses continue to grow alongside the healthy economy. Our net margin has improved and our asset quality remains superior. There is healthy demand for the Bank's services across all our customer segments."

Security Bank chief financial officer Mr. Joselito E. Mape said, "Our cost efficiency is improving, with cost-to-income ratio at 48 percent in Q1-2014 from 55 percent in 2013. We made major investments in branch network and retail bank expansion in the last two years, which elevated our cost-to-income ratio during that period. Our capital level under Basel 3 is healthy, with Tier 1 CAR at 13.5 percent and Total CAR at 14 percent."

Security Bank plans to issue Basel 3 compliant Tier 2 bonds to tap into value-adding opportunities in the market and fuel the Bank's growth.

Published in the Sun.Star Davao newspaper on May 14, 2014.


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