Security Bank Corporation (PSE: SECB) announced their financial results for the first half of 2011 with a net income of PhP 2.4 billion, 33% higher than the same period in 2010. This resulted to an annualized return on equity (ROE) of 19.0% as of June 2011.

The asset base of Security Bank, at the end of the first semester of 2011, expanded by 41% to PhP 212 billion from the PhP 151 billion recorded in June of 2010. The Bank has been able to sustain strong growth in its Net loans which grew to PhP 86 billion, a 24% increase vis-?-vis the same period last year.

Net interest income for the period was at PhP 3.5 billion, a year-on-year growth of PhP 517 million or 17%. Having fully deployed excess cash from securities sold at end 2010 and coupled with the buoyant growth in credits, the Bank maintained a net interest margin of 4.0%.

On the other hand, Non-Interest Income dipped by 8% to PhP 1.24 billion versus the first six months of 2010, as the prevailing high interest rate environment contributed to the slack in trading gains. Nevertheless, key components of other income continued to reflect very solid growth with foreign exchange gains increasing by PhP 203 million or 36% on the back of increased customer flows. Service charges, fees and commissions likewise continued its healthy growth increasing by 23% or PhP 89 million over the same period in 2010.

Meanwhile operating expenses, excluding provisions and impairment losses, stood at PhP 2.1 billion relatively flat to the number recorded in the prior year, translating to a cost to income ratio of 44%.

For the end of the second quarter of 2011, Security Bank maintained its superior asset quality indices with a Non-performing loans (NPL) ratio of 1.0% and cover at 3.15 times. Moreover, the bank