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MANILA, Philippines – Security Bank Corp. registered a nine percent increase for 9M2016 at P6.6 billion.
The bank, which is jointly owned by Frederick Dy’s family and The Bank of Tokyo Mitsubishi UFJ Ltd., recorded an increase of P500 million in its last year registration of P6.1 of the same period.
From January to September, the financial firm’s earnings improvement is contributed by its core businesses, which have continued in setting off its trading gains’ abrupt decline in the midst of vulnerable financial markets.
Security Bank President and CEO, Alfonso Salcedo Jr., stated that the financial firm is delighted with the steady performance of the company.
Its net interest income increased from P9 billion to P11.5 billion, which is an increased by 28 percent.
In the first nine months, a surge by 24 percent in its loan portfolio was registered, while the consumer loans increased by 74 percent. Its corporate and commercial loans also widened by 20 percent.
The company’s loan portfolio comprises of credit card receivables, home loans, and auto loans, which account to 13 percent of the segment. Last year, the mentioned areas consist of only 10 percent of the loan business.
Salcedo stated that lower trading gains are offset by the bank’s net interest steady growth. Trading gains have dropped from P2.9 billion to P1.6 billion compared to last year, which is a 44.9 percent plunge.
Moreover, its low-cost deposits show a healthy growth rate. The total deposits of the bank climbed by nine percent as the low-cost deposits exhibited a 21 percent rise. Low-cost deposits covered high-cost deposits’ bland movement.
Amid the 11.1 percent decline in fees, service charges, and commissions from P1.8 billion to P1.6 billion, non-interest income is valued at P4.1 billion.
Operating expenses of the bank rose by 12 percent, which comprise of P664 million for probable credit losses margin. Its asset quality remained healthy with 0.33 percent non-performing loan ratio and NPL reserve coverage of 169 percent.
On the back of 27 percent net interest income increase, which is P4.1 billion, net income of Security Bank climbed up to P1.8 billion or 26 percent gain.