Security Bank Corporation (SBC) had earned P289 million for the second quarter of this year, up 54 percent from the first quarter net profit figure of P188 million. The bank’s income now stands at P476 million, up 15 percent over the last year’s level.
The income improvement resulted from the strong performance of its interest differential businesses, accumulated income and more aggressive collection efforts on its portfolio of non-performing assets (NPA).
 Alberto S.
Villarosa, president and CEO of Security Bank, said the first semester income translates to an annualized Return-on-equity (ROE) of 9.7 percent, a significant increase from last year’s 6.4 percent. The bank’s net interest income reflected a quarterly increase of 14 percent as a result of expanded asset volumes and improved operating margins. It also had higher income from its portfolio of investment securities.
Intensified collection efforts from its non-performing loans
(NPLs) resulted in interest income recoveries, shrinking Security Bank’s NPL ratio to 7.8 percent from the first quarter’s 8.6 percent, which is one of the lowest in the industry.
"A 12 percent income improvement over the first quarter was achieved, despite the continued buildup of provisions to P232 million for the ROPOA. This was made in case deterioration in market values occurs," Villarosa said.
Operating expenses were also kept under control, allowing the bank to post a cost-to-income ratio of 54 percent for the second quarter, lower than the 58 percent recorded in the first quarter of the year.
"Funding costs have been efficiently managed, with focus on building lower-cost deposits. The growth in net margins was supplemented with fee-based income, which had improved by 18 percent over the first quarter level because of higher foreign exchange earnings, securities trading gains and improved collection of NPLs," he said.
Villarosa said the bank’s consumer and corporate banking businesses are tracking their 3-year strategic plan with the launch of new initiatives and products geared towards growth in low-cost deposits.
In the first half of the year, Security Bank had successfully launched several products, including: The Tier 2 capital notes; peso and dollar common trust funds; long-term time deposits; the CheckRight- an internet-based checking account and cash management system; and CheckPower, a high- interest checking account.
Other cash management products, such as the
eFPS- the bank’s corporate electronic tax payment system, and the DigiBanker MC- a corporate check disbursements system, grew by 52 percent and 75 percent, respectively, year-on-year.
SB Cards Corporation, the bank’s credit cards subsidiary had pursued aggressive acquisition and usage programs, resulting in the tripling of the Diners Club International card and the Security Mastercard cardmember bases. SB Equities, the bank’s stockbrokerage house had continued its aggressive sales and marketing. It is now ranked 7th among brokerage firms in terms of volume traded.
|
