Security Bank Corporation (PSE: SECB) recently disclosed a first quarter net income attributable to equity holders of P930.5 million, a 24.0% increase over the figure reported for the 1st quarter of 2009. The performance equates to an annualized return on equity (ROE) of 20.1%, underscoring its consistency in achieving superior returns to shareholder in the banking industry.

The Bank’s asset base stood at P143.6 billion, a P3.5 billion growth from end of March 2009 numbers. Loans were reported at P65.2 billion and comprised 45.4% of total assets notwithstanding a slight dip from the P66.6 billion reported a year earlier.

Revenues recorded for the quarter were at P2.2 billion, driven by P 1.5 billion in net interest income which was 7.0% or P98.4 million higher than the same period last year. Non interest income stood at P 725.1 million for the period, an improvement of P107.5 million or 17.4% driven by healthy growth in securities and foreign exchange gains which were up 19.8%.

Operating expenses, excluding provision for credit and impairment losses, amounted to P1.1 billion representing an increase of P 49.7 million or 4.9% from the previous year. The modest increase in expenses coupled with the revenue performance translated to an exceptional cost to income ratio of 47.6%.

Security Bank Corporation President and Chief Executive Officer, Mr. Alberto S. Villarosa explained: ?We have worked hard to build a sustainable revenue base from which we intend to continue leveraging on our strengths and increasing our relevance to our customers. With the strength of the additional capital we had put into the business last year, we are well positioned to seize further growth opportunities.?

Security Bank’s non-performing loans ratio of 1.5% for the period remains among the best in the industry. The Bank had likewise set aside provisions of 303% cover for these non-performing loans.

In view of the earnings registered for the quarter coupled with the additional equity raised in 2009, the Bank boasts of a fundamentally solid balance sheet as its Capital Adequacy Ratio was at 18.1% as of the first quarter of 2010.