|
Security Bank Corporation (PSE: SECB) posted a net
income of P1.41 billion for the first semester of
2007, up by P404.3 million or 40% versus the
comparative period in 2006. This remarkable
performance occurred following a sustained
compound annual growth rate in net income of 57%
over the last three years.
Underpinning the robust improvements in the
bottom-line is a 29% improvement in revenues to
P3.98 billion over the first semester of 2006.
Propelled by a 19% growth in resources to P145.7
billion, with net loans increasing by P8.0 billion
or 24% to P 41.6 billion, Security Bank’s net
interest income grew to P 2.34 billion, up by
P493.0 million or 27% over the first semester of
2006. Meanwhile, other income likewise reflected a
similar increase of P407.9 million or 33% to P1.65
billion versus the P1.24 billion recorded in the
first semester of 2006.
The composition of other income likewise revealed
a change in the bank’s revenue profile. The bank
recognized P722.9 million in trading gains, a
year-on year growth of by 1.5% or P10.4 million.
However, following the performance achieved in the
first quarter of 2007, the Bank’s service charges,
fees and commissions continued to reflect a
vibrant increase of P138.3 million or 49% to
P420.1 million as of the first semester 2007.
Miscellaneous income likewise showed a substantial
P164 million or 93% increase over the comparative
period to close the semester at P340.4 million.
For its part, arising from increased commercial
foreign exchange distribution; the Bank achieved
P165.5 million in FX gains, up by P95.2 million or
135%.
In a related statement, Mr. Carlos M. Borromeo,
Chief Financial Officer explained: “We are
certainly committed to building our franchise. We
are very pleased that we are showing a healthy
increase in lending notwithstanding the heightened
competition for market share. Even more important
is that our efforts at building the consumer
lending business are beginning to bear fruit.”.
When asked about the revenue performance, Mr.
Borromeo stated: “The expansion in the resource
base and the pick up in lending have certainly
contributed to the Bank’s net margins. But even
more telling is the exceptional growth in the
non-interest income components such as fees and
commissions which resulted from the larger deposit
franchise we have built. We are likewise seeing
commendable growth in our miscellaneous income.”
Operating expenses (net of provisions and
amortizations), on the other hand, reflected a
modest increase of P202.2 million or 12.5% to
stand at P1.82 billion for the first semester
versus the P1.62 billion the year before.
Capitalizing on the superior operating
performance, provisions were accelerated
registering P469.1 million versus the P282.9
million recorded for the first semester of 2006.
The noteworthy financial performance resulted in
an average return on equity of 22.6% and average
return on assets of 2.05%. Meanwhile, earnings per
share for the period reached P4.29 per share
versus P3.07 per share the prior year. The bank
continues to register superior results which have
resulted in a 27% increase in its share price from
P65.50 per share at year-end 2006 to the current
level of P83.00 per share. |
